10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2016

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to_________

Commission file number: 000-23322

CASCADE BANCORP

(Exact name of registrant as specified in its charter)

Oregon	93-1034484
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

1100 N.W. Wall Street

Bend, Oregon 97703

(Address of principal executive offices)

(Zip Code)

(877) 617-3400

(Registrant’s telephone number, including area code) 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x  No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

¨ Large accelerated filer   x Accelerated filer   ¨ Non-accelerated filer   ¨ Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨  No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 76,262,497 shares of common stock, no par value, as of November 2, 2016.

CASCADE BANCORP & SUBSIDIARY

FORM 10-Q

QUARTERLY REPORT

September 30, 2016

	INDEX
		Page
PART I:  FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets:	3
	September 30, 2016 and December 31, 2015
	Condensed Consolidated Statements of Operations:	5
	Three and nine months ended September 30, 2016 and 2015
	Condensed Consolidated Statements of Comprehensive Income:	6
	Three and nine months ended September 30, 2016 and 2015
	Condensed Consolidated Statements of Cash Flows:	7
	Nine months ended September 30, 2016 and 2015
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	61
Item 4.	Controls and Procedures	61
PART II:  OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	62
Item 5	Other Information	62
Item 6.	Exhibits	62
SIGNATURES		63

2

PART I – FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

Cascade Bancorp & Subsidiary

Condensed Consolidated Balance Sheets

September 30, 2016 and December 31, 2015

(Dollars in thousands)

(unaudited) 

3

	September 30,   2016			December 31, 2015
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	54,890		$	46,354
Interest bearing deposits	97,197			31,178
Federal funds sold	273			273
Total cash and cash equivalents	152,360			77,805
Investment securities available-for-sale	523,275			310,262
Investment securities held-to-maturity, estimated fair value of $148,213 at September 30, 2016; $142,260 at December 31, 2015	141,326			139,424
Federal Home Loan Bank (FHLB) stock	3,270			3,000
Loans held for sale	9,478			3,621
Loans, net	2,034,353			1,662,095
Premises and equipment, net	50,221			42,031
Bank-owned life insurance (BOLI)	56,708			54,450
Other real estate owned (OREO), net	1,677			3,274
Deferred tax asset (DTA), net	46,211			50,673
Core deposit intangible (CDI)	12,691			6,863
Goodwill	84,775			78,610
Other assets	58,476			35,921
Total assets	$	3,174,821		$	2,468,029
LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	946,318		$	727,730
Interest bearing demand	1,371,955			1,044,134
Savings	192,780			135,527
Time	234,028			175,697
Total deposits	2,745,081			2,083,088
Other liabilities	62,744			48,167
Total liabilities	2,807,825			2,131,255
Stockholders’ equity:
Preferred stock, no par value; 5,000,000 shares authorized; none issued or outstanding	—			—
Common stock, no par value; 100,000,000 shares authorized; 76,263,275 issued and outstanding as of September 30, 2016; 72,792,570 issued and outstanding as of December 31, 2015	470,938			452,925
Accumulated deficit	(106,918		)	(117,772		)
Accumulated other comprehensive income	2,976			1,621
Total stockholders’ equity	366,996			336,774
Total liabilities and stockholders’ equity	$	3,174,821		$	2,468,029

See accompanying notes to condensed consolidated financial statements.

4

Cascade Bancorp & Subsidiary

Condensed Consolidated Statements of Operations

Three and Nine Months Ended September 30, 2016 and 2015

(Dollars in thousands, except per share amounts)

(unaudited)

	Three months ended    September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Interest income:
Interest and fees on loans	$	20,622		$	17,788		$	57,579		$	51,269
Interest on investments	3,514			2,995			11,561			8,783
Other interest income	217			58			646			118
Total interest income	24,353			20,841			69,786			60,170
Interest expense:
Deposits:
Interest bearing demand	494			337			1,365			965
Savings	21			10			45			30
Time	54			83			191			442
Other borrowings	—			—			26			6
Total interest expense	569			430			1,627			1,443
Net interest income	23,784			20,411			68,159			58,727
Loan loss recovery	—			—			—			(2,000		)
Net interest income after loan loss recovery	23,784			20,411			68,159			60,727
Non-interest income:
Service charges on deposit accounts	1,786			1,326			4,887			3,836
Card issuer and merchant services fees, net	2,643			1,837			7,178			5,336
Earnings on BOLI	434			252			941			736
Mortgage banking income, net	857			624			2,251			2,089
Swap fee income	713			595			1,845			1,895
SBA gain on sales and fee income	428			554			988			1,060
Gain on sales of investments	—			503			—			503
Other income	1,079			693			3,077			3,746
Total non-interest income	7,940			6,384			21,167			19,201
Non-interest expense:
Salaries and employee benefits	13,217			11,315			39,335			33,033
Occupancy	2,546			1,123			6,873			3,906
Information technology	1,558			745			4,137			2,729
Equipment	864			390			1,622			1,142
Communications	615			560			1,908			1,585
Federal Deposit Insurance Corporation (FDIC) insurance	514			342			1,346			1,046
OREO (income) expense	43			122			136			11
Professional services	1,682			1,548			4,340			3,931
Card issuer	1,003			693			2,956			2,199
Insurance	186			183			519			583
Other expenses	2,992			2,049			8,901			6,116
Total non-interest expense	25,220			19,070			72,073			56,281
Income before income taxes	6,504			7,725			17,253			23,647
Income tax provision	(2,415		)	(2,626		)	(6,400		)	(8,635		)
Net income	$	4,089		$	5,099		$	10,853		$	15,012
Basic and diluted income per share:
Net income per common share	$	0.06		$	0.07		$	0.15		$	0.21
Net income per common share (diluted)	$	0.06		$	0.07		$	0.15		$	0.21

See accompanying notes to condensed consolidated financial statements.

5

Cascade Bancorp & Subsidiary

Condensed Consolidated Statements of Comprehensive Income

Three and Nine Months Ended September 30, 2016 and 2015

(Dollars in thousands)

(unaudited)

	Three months ended    September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Net income	$	4,089		$	5,099		$	10,853		$	15,012
Other comprehensive income:
Change in unrealized gains on investment securities available-for-sale	1,093			427			2,185			(300		)
Tax effect on securities	(415		)	(162		)	(830		)	43
Total other comprehensive income (loss)	678			265			1,355			(257		)
Comprehensive income	$	4,767		$	5,364		$	12,208		$	14,755

See accompanying notes to condensed consolidated financial statements.

6

Cascade Bancorp & Subsidiary

Condensed Consolidated Statements of Cash Flows

Nine Months EndedSeptember 30, 2016 and 2015

(Dollars in thousands)

(unaudited)

	Nine months ended September 30,
	2016			2015
Net cash provided by operating activities	$	2,557		$	33,341
Investing activities:
Purchases of investment securities available-for-sale	(314,655		)	(65,584		)
Purchases of investment securities held to maturity	(6,464		)	—
Proceeds from maturities, calls, sales and prepayments of investment securities available-for-sale	104,137			88,325
Proceeds from maturities and calls of investment securities held-to-maturity	4,185			8,349
Proceeds from redemption of FHLB stock	10,574			22,634
Purchases of FHLB stock	(10,420		)	—
Loan originations, net of collections	(269,464		)	(150,012		)
Purchases of premises and equipment	(2,205		)	(334		)
Proceeds from sales of premises and equipment	—			26
Proceeds from sales of other assets	—			1,855
Proceeds from sales of OREO	2,050			964
Net cash assumed in Bank of America branch acquisition	456,611			—
Net cash assumed in Prime Pacific Financial Services, Inc. acquisition	7,625			—
Net cash used in investing activities	(18,026		)	(93,777		)
Financing activities:
Net increase in deposits	90,560			102,845
Proceeds from stock options exercised	5			—
Tax effect of non-vested restricted stock	(541		)	(395		)
FHLB advance borrowings	—			95,000
Repayment of FHLB advances	—			(95,000		)
Net cash provided by financing activities	90,024			102,450
Net increase in cash and cash equivalents	74,555			42,014
Cash and cash equivalents at beginning of period	77,805			83,089
Cash and cash equivalents at end of period	$	152,360		$	125,103
Supplemental disclosures of cash flow information:
Interest paid	$	13,272		$	7,981
Taxes paid	$	608		$	891
Transfers of Property, Plant & Equipment to Other Assets	$	928		$	394
Loans transferred to OREO	$	367		$	1,558

See accompanying notes to condensed consolidated financial statements.

7

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

1.    Basis of Presentation

The accompanying interim condensed consolidated financial statements include the accounts of Cascade Bancorp (“Bancorp”), an Oregon-chartered single bank holding company, and its wholly-owned subsidiary, Bank of the Cascades (the “Bank”) (collectively, the “Company” or “Cascade”). All significant inter-company accounts and transactions have been eliminated in consolidation.

The interim condensed consolidated financial statements have been prepared by the Company without audit and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, certain financial information and footnotes have been omitted or condensed. In the opinion of management, the condensed consolidated financial statements include all adjustments (all of which are of a normal and recurring nature) necessary for the fair presentation of the results of the interim periods presented. In preparing the condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the balance sheets and income and expenses for the reporting periods. Actual results could differ from those estimates. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

The condensed consolidated financial statements as of and for the year ended December 31, 2015 were derived from the Company’s audited consolidated financial statements, but do not include all disclosures contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”). The interim condensed consolidated financial statements should be read in conjunction with the December 31, 2015 consolidated financial statements, including the notes thereto, included in the 2015 Annual Report.

2.    Business Combinations

Prime Pacific Financial Services, Inc.

At close of business on August 1, 2016, (the "PPFS Acquisition Date”), the Company acquired Prime Pacific Financial Services, Inc. (“PPFS”), the holding company of Prime Pacific Bank, National Association, a Snohomish county, national banking association.

The merger was completed following the approval of PPFS shareholders, as well as the satisfaction of other customary closing conditions, including receipt of all requisite regulatory approvals.

Each share of PPFS common stock was converted into the right to receive 0.3050 shares of Cascade common stock. The conversion resulted in Cascade issuing 2,921,012 shares of its common stock.

The merger was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Preliminary goodwill of $2.2 million was calculated as the purchase premium after adjusting for the fair value of net assets acquired and represents the value expected from the synergies created and the economies of scale expected from combining the two banking organizations.

In most instances, determining the fair value of the acquired assets and assumed liabilities required us to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of those determinations relates to the valuation of acquired loans. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and other factors, such as prepayments. In accordance with the applicable accounting guidance for business combinations, there was no carry-over of PPFS’s previously established reserve for loan losses.

The following table provides a summary of the purchase price calculation as of the PPFS Acquisition Date and the identifiable assets purchased and the liabilities assumed at their estimated fair values. These fair value measurements are provisional based on third-party valuations that are currently under review and are subject to refinement for up to one year after the PPFS Acquisition Date based on additional information that may be obtained by us that existed as of the PPFS Acquisition Date.

8

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Purchase Price (in thousands), except per share data
Cascade shares issued for PPFS shares			2,921,012
Cascade share price			$	5.56
Consideration from common stock conversion (0.3050 ratio)			$	16,238
Cash paid in lieu of fractional shares			$	1
Total purchase price			16,239
Assets
Cash and cash equivalents	$	7,625
FHLB stock	424
Loans, net	102,837
Premises and equipment	6,302
Deferred tax asset	2,156
Bank owned life insurance	1,491
Other assets	2,364
Total assets	$	123,199
Liabilities
Deposits	$	101,544
Other liabilities	7,939
Total liabilities	$	109,483
Net identifiable assets acquired			13,716
Intangible asset acquired (1)			342
Goodwill			$	2,181
(1) Intangible assets consist of core deposit intangibles. The useful life for which the core deposit intangible is being amortized is 10 years.

PPFS acquisition-related charges of $1.2 million and $1.3 million were recorded in the consolidated statement of comprehensive income for the three and nine months ended September 30, 2016, respectively. Such expenses were for human resources and professional services, among other categories, and include investment banker fees, legal and accounting support, as well as severance, IT and certain branch consolidation items.

The following table provides the unaudited pro forma information for the results of operations for the three and nine months ended September 30, 2016 and 2015, as if the acquisition had occurred on January 1, 2015. These adjustments reflect the impact of certain purchase accounting fair value measurements, primarily comprised of PPFS’s loan and deposit portfolios. In addition, the $1.3 million in acquisition-related expenses noted earlier are included in the nine months ended September 30, 2015. These unaudited pro forma results are presented for illustrative purposes only and are not intended to represent or be indicative of the actual results of operations of the combined banking organization that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations.

	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Net interest income	24,379	21,775	71,547	62,815
Non-interest expense	24,243	20,487	73,843	63,742
Net income	5,151	5,314	12,846	13,704
Net income per diluted share	0.07	0.07	0.17	0.18

9

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Bank of America, National Association branches

On March 4, 2016, the Bank completed the acquisition of twelve Oregon branch locations and three Washington branch locations from Bank of America, National Association (the “branch acquisition”). This transaction allowed Cascade the opportunity to enhance and strengthen its footprint in Oregon, while providing entry into the Washington market. The Bank assumed approximately $469.9 million of branch deposits, paying a 2.00% premium on the average balance of deposits assumed, for a cash purchase price of $9.7 million.

The following is a condensed balance sheet disclosing the estimated fair value amounts of the branches acquired in the branch acquisition assigned to the major consolidated asset and liability captions at the acquisition date (dollars in thousands):

ASSETS
Cash and cash equivalents	$	456,611
Premises and equipment, net	3,113
Core deposit intangibles	6,427
Goodwill	3,984
Other assets	463
Total assets	$	470,598
LIABILITIES
Deposits	$	469,889
Other liabilities	709
Total liabilities	$	470,598

The core deposit intangible asset recognized as part of the branch acquisition will be amortized over its estimated useful life of approximately 10 years.

The fair value of demand deposit accounts assumed from the branch acquisition approximated the carrying value as checking and savings accounts have no stated maturity and are payable on demand.  Certificates of deposit were valued by comparing the contractual cost of the portfolio to a similar portfolio bearing current market rates.

Direct costs related to the branch acquisition were expensed as incurred in the quarter ended March 31, 2016. Such expenses primarily related to professional and legal services, human resource costs and information system charges. For the quarter ended March 31, 2016, the Company incurred $2.3 million of expenses related to the branch acquisition.

Pro forma income statements are not being presented as the information is not practicable to produce.

10

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

3.    Investment Securities

The following table presents investment securities at September 30, 2016 and December 31, 2015, showing that available-for-sale and held-to-maturity securities increased from December 31, 2015 primarily due to redeployment of cash assumed in the branch acquisition into securities (dollars in thousands):

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
September 30, 2016
Available-for-sale
U.S. Agency mortgage-backed securities (MBS)	$	168,862	$	2,715	$	(81	)	$	171,496
Non-agency MBS	269,508		1,540		(296		)	270,752
U.S. Agency asset-backed securities	6,876		605		(52		)	7,429
Corporate securities	72,695		382		(30		)	73,047
Mutual fund	534		17		—			551
	$	518,475	$	5,259	$	(459	)	$	523,275
Held-to-maturity
U.S. Agency MBS	$	102,226	$	4,816	$	(2	)	$	107,040
Obligations of state and political subdivisions	38,810		2,073		—			40,883
Tax credit investments	290		—		—			290
	$	141,326	$	6,889	$	(2	)	$	148,213
December 31, 2015
Available-for-sale
U.S. Agency MBS	$	154,691	$	2,698	$	(455	)	$	156,934
Non-agency MBS	118,765		477		(1,016		)	118,226
U.S. Agency asset-backed securities	7,468		800		(23		)	8,245
Corporate securities	26,199		121		—			26,320
Mutual fund	525		12		—			537
	$	307,648	$	4,108	$	(1,494	)	$	310,262
Held-to-maturity
U.S. Agency MBS	$	98,800	$	1,875	$	(5	)	$	100,670
Obligations of state and political subdivisions	421		—		—			421
Tax credit investments	40,203		968		(2		)	41,169
	$	139,424	$	2,843	$	(7	)	$	142,260

11

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

The following table presents the contractual maturities of investment securities at September 30, 2016 (dollars in thousands):

	Available-for-sale				Held-to-maturity
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
Due in one year or less	$	10,397	$	10,427	$	—	$	—
Due after one year through five years	68,008		68,389		30,431		31,165
Due after five years through ten years	40,715		41,060		90,472		95,870
Due after ten years	398,821		402,848		20,133		20,888
Mutual fund	534		551		—		—
Tax credit investments	—		—		290		290
	$	518,475	$	523,275	$	141,326	$	148,213

The following table presents the fair value and gross unrealized losses of the Bank’s investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Less than 12 months					12 months or more					Total
	Estimated  fair value		Unrealized losses			Estimated  fair value		Unrealized losses			Estimated  fair value		Unrealized losses
September 30, 2016
Available-for-sale
U.S. Agency MBS	$	33,576	$	(78	)	$	232	$	(3	)	$	33,808	$	(81	)
Non-Agency MBS	56,692		(296		)	—		—			56,692		(296		)
U.S. Agency asset-backed securities	1,929		(52		)	—		—			1,929		(52		)
Corporate Securities	13,430		(30		)	—		—			13,430		(30		)
	$	105,627	$	(456	)	$	232	$	(3	)	$	105,859	$	(459	)
Held-to-maturity
U.S. Agency MBS	$	1,882	$	(2	)	$	—	$	—		$	1,882	$	(2	)
Obligations of state and political subdivisions	708		—			—		—			708		—
	$	2,590	$	(2	)	$	—	$	—		$	2,590	$	(2	)
December 31, 2015
Available-for-sale
U.S. Agency MBS	$	23,630	$	(123	)	$	34,576	$	(332	)	$	58,206	$	(455	)
Non-Agency MBS	66,412		(765		)	12,225		(251		)	78,637		(1,016		)
U.S. Agency asset-backed securities	—		—			1,521		(23		)	1,521		(23		)
	$	90,042	$	(888	)	$	48,322	$	(606	)	$	138,364	$	(1,494	)
Held-to-maturity
U.S. Agency MBS	2,063		(5		)	—		—			$	2,063	$	(5	)
Obligations of state and political subdivisions	725		(2		)	—		—			725		(2		)
	$	2,788	$	(7	)	$	—	$	—		$	2,788	$	(7	)

12

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

The unrealized losses on investments in U.S. Agency and non-agency MBS and U.S. Agency asset-backed securities are primarily due to changes in market yield/rate spreads at September 30, 2016 and December 31, 2015 as compared to yield/rate spread relationships prevailing at the time specific investment securities were purchased. The Company had 38 and 46 securities in the loss position at September 30, 2016 and December 31, 2015, respectively. Management expects the fair value of these investment securities to recover as securities approach their maturity dates. Management does not believe that the above gross unrealized losses on investment securities are other-than-temporary. Accordingly, no impairment adjustments have been recorded.

Management intends to hold the investment securities classified as held-to-maturity until they mature, at which time the Company will receive full amortized cost value for such investment securities. Furthermore, as of September 30, 2016, management did not have the intent to sell any of the securities classified as held-to-maturity in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

4.Loans and reserve for credit losses

 The composition of the loan portfolio at September 30, 2016 and December 31, 2015 was as follows (dollars in thousands):

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
Originated loans (a):
Commercial real estate:
Owner occupied	$	280,901		15.8	%	$	263,095		18.1	%
Non-owner occupied	486,689			27.6	%	431,379			29.7	%
Total commercial real estate loans	767,590			43.4	%	694,474			47.8	%
Construction	168,558			9.6	%	119,723			8.2	%
Residential real estate	406,374			23.1	%	237,084			16.3	%
Commercial and industrial	378,700			21.5	%	363,335			25.0	%
Consumer	41,502			2.4	%	38,362			2.7	%
Total loans	1,762,724			100.0	%	1,452,978			100.0	%
Less:
Deferred loan fees	(1,917		)			(1,419		)
Reserve for loan losses	(25,238		)			(24,415		)
Loans, net	$	1,735,569				$	1,427,144
Acquired loans (b):
Commercial real estate:
Owner occupied	$	95,102		31.8	%	$	45,236		19.3	%
Non-owner occupied	102,088			34.2	%	95,183			40.5	%
Total commercial real estate loans	197,190			66.0	%	140,419			59.8	%
Construction	14,423			4.8	%	10,629			4.5	%
Residential real estate	59,092			19.8	%	61,306			26.1	%
Commercial and industrial	26,569			8.9	%	21,109			9.0	%
Consumer	1,510			0.5	%	1,488			0.6	%
Total loans	$	298,784		100.0	%	$	234,951		100.0	%
Total loans:
Commercial real estate:
Owner occupied	$	376,003		18.1	%	$	308,331		18.3	%
Non-owner occupied	588,777			28.6	%	526,562			31.2	%

13

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Total commercial real estate loans	964,780			46.7	%	834,893			49.5	%
Construction	182,981			8.9	%	130,352			7.7	%
Residential real estate	465,466			22.6	%	298,390			17.7	%
Commercial and industrial	405,269			19.7	%	384,444			22.8	%
Consumer	43,012			2.1	%	39,850			2.3	%
Total loans	2,061,508			100.0	%	1,687,929			100.0	%
Less:
Deferred loan fees	(1,917		)			(1,419		)
Reserve for loan losses	(25,238		)			(24,415		)
Loans, net	$	2,034,353				$	1,662,095
(a) Loans organically made through the Company’s normal and customary origination process, including adjustable rate mortgage (“ARM”) purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

The following describes the distinction between originated and acquired loan portfolios and certain significant accounting policies relevant to each of these portfolios.

Originated loans

Loans originated for investment are stated at their principal amount outstanding adjusted for partial charge-offs, the reserve for loan losses and net deferred loan fees and costs. Interest income on loans is accrued over the term of the loans. Interest is not accrued on loans where collectability is uncertain. Accrued interest on loans is presented in “Other assets” on the condensed consolidated balance sheet. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan as an adjustment to the related loan yield.

Approximately 76.1% of the Bank’s originated loan portfolio at September 30, 2016 consisted of real estate-related loans, including construction and development loans, residential mortgage loans, and commercial loans secured by commercial real estate. At September 30, 2016, approximately 78.2% of the Bank’s total portfolio (inclusive of acquired loans) consisted of real estate-related loans as described above. The Bank’s results of operations and financial condition are affected by general economic trends and in particular, the strength of the local residential and commercial real estate markets in Central, Southern and Northwest Oregon, as well as the greater Boise/Treasure Valley, Idaho and Seattle, Washington metro areas. Real estate values could be affected by, among other things, a worsening of national and local economic conditions, an increase in foreclosures, a decline in home sale volumes, and an increase in interest rates. Furthermore, the Bank may experience an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws, or default on their loans or other obligations to the Bank in the event of a sustained downturn in business and economic conditions generally or specifically in the principal markets in which the Bank does business. An increase in the number of delinquencies, bankruptcies, or defaults could result in a higher level of non-performing assets, net charge-offs, and loan loss provision. Management expects to diversify its commercial real estate (“CRE”) concentration over time, but real estate-related loans will remain a significant portfolio component due to the nature of the economies, businesses, and markets the Bank serves.

In the normal course of business, the Bank may participate portions of loans to third parties in order to extend the Bank’s lending capability or to mitigate risk. At September 30, 2016 and December 31, 2015, the portion of loans participated to third parties (which are not included in the accompanying condensed consolidated financial statements) totaled $50.7 million and $44.2 million, respectively.

Acquired loans

PPFS

Acquired loans include those loans purchased by the Company in its acquisition of PPFS, which was completed on August 1, 2016. These loans were recorded at estimated fair value at the PPFS Acquisition Date. The fair value estimates for acquired loans are based on expected prepayments, charge-offs and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the PPFS acquired loans at acquisition was a reduction of $2.3 million, representing

14

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

a valuation adjustment for interest rate and credit which will be accreted over the life of the loans (approximately 10 years). As of September 30, 2016, the remaining net fair value adjustment to the PPFS acquired loans was $2.3 million.

Home

Acquired loans also include those loans purchased by the Company in its acquisition of Home Federal Bancorp, Inc. (“Home”), which was completed on May 16, 2014 (the “Home Acquisition Date”). These loans were recorded at estimated fair value at the Home Acquisition Date. The fair value estimates for acquired loans are based on expected prepayments, charge-offs and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the Home acquired loans at acquisition was a reduction of $6.0 million, representing a valuation adjustment for interest rate and credit which will be accreted over the life of the loans (approximately 10 years). As of September 30, 2016, the remaining net fair value adjustment was $1.9 million.

Of the PPFS and Home loans acquired on the PPFS Acquisition Date and Home Acquisition Date, as applicable, and still held at September 30, 2016, $9.8 million, or 3.3%, were graded substandard. With the amount of classified loans acquired being nominal, all loans acquired are treated in a manner consistent with originated loans for credit risk management and accounting purposes.

As of September 30, 2016, $22.3 million, or 7.5% of the $298.8 million in acquired loans were covered under loss sharing agreements with the FDIC (“covered loans”) that were entered into in September 2009 and September 2010 between the FDIC and Home. The loss sharing agreements have limited terms (10 years for net losses on single-family residential real estate loans, as defined by the FDIC, five years for losses on non-residential real estate loans, as defined by the FDIC, and an additional three years with respect to recoveries on non-residential real estate loans). After the expiration of the loss sharing agreements, the Company will not be indemnified for losses and related expenses on covered loans. When the loss sharing agreements expire, the Company’s and the Bank’s risk-based capital ratios will be reduced. While the agreements are in place, the covered loans receive a 20% risk-weighting. When the agreements expire, the risk-weighting for previously covered loans will most likely increase to 100%, based on current regulatory capital definitions. Nearly all of the assets remaining in the covered loans portfolio are non-single family covered loans. Therefore, most of the covered loans were no longer indemnified after September 30, 2014 or were no longer indemnified after September 30, 2015. With the amount of classified loans covered under these agreements being nominal, amounts that may be due to or due from the FDIC under loss sharing agreements will be accounted for on a cash basis.

A net loss share payable was recorded at the Home Acquisition Date that represents the estimated value of reimbursement the Company expects to pay to the FDIC for recoveries net of incurred losses on covered loans. These expected reimbursements are recorded as part of covered loans in the accompanying consolidated balance sheets. Upon the determination of an incurred loss or recovery, the loss share receivable/payable will be changed by the amount due to or due from the FDIC.

Changes in the loss share payable associated with covered loans for the three and nine months ended September 30, 2016 were as follows (dollars in thousands):

	Three months ended			Nine months ended
	September 30, 2016
Balance at beginning of period	$	201		$	289
Paid to FDIC	(201		)	(857		)
Increase due to impairment	—			(53		)
FDIC reimbursement	396			1,077
Shared loss expenses	(28		)	(92		)
Adjustments from prior periods	—			4
Balance at end of period	$	368		$	368

Reserve for loan losses

The reserve for loan losses represents management’s estimate of known and inherent losses in the loan portfolio as of the condensed consolidated balance sheet date and is recorded as a reduction to loans. The reserve for loan losses is increased by charges to operating expense through the loan loss provision, and decreased by loans charged-off, net of recoveries. The reserve for loan losses requires complex subjective judgments as a result of the need to make estimates about matters that are uncertain. The reserve

15

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

for loan losses is maintained at a level currently considered adequate to provide for potential loan losses based on management’s assessment of various factors affecting the loan portfolio.

However, the reserve for loan losses is based on estimates and actual losses may vary from the current estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Therefore, management cannot provide assurance that, in any particular period, the Company will not have significant losses in relation to the amount reserved. The level of the reserve for loan losses is also determined after consideration of bank regulatory guidance and recommendations and is subject to review by such regulatory authorities who may require increases or decreases to the reserve based on their evaluation of the information available to them at the time of their examinations of the Bank.

For purposes of assessing the appropriate level of the reserve for loan losses, the Company analyzes loans and commitments to loan, and the amount of reserves allocated to loans and commitments to loan in each of the following reserve categories: pooled reserves, specifically identified reserves for impaired loans, and the unallocated reserve. Also, for purposes of analyzing loan portfolio credit quality and determining the appropriate level of reserve for loan losses, the Company identifies loan portfolio segments and classes based on the nature of the underlying loan collateral.

Risk ratings for individual shared national credits (“SNC”) are estimated using analysis of both public debt ratings and internal ratings. Expected loss rates are determined based upon historical published specific loss data for similar loans based on average losses and losses stratified by public debt ratings. Public ratings combined with internal risk rates are used to determine a minimum historical loss factor for each SNC loan. This amount may be increased for qualitative conditions including macroeconomic environment and observations by the Company’s SNC management group. The SNC lending strategy is intended to diversify the Company’s credit risk profile geographically and by industry. Additionally, such loans enhance the Company’s interest rate risk profile as they float with LIBOR rates.

The increase in the reserve for loan losses from December 31, 2015 to September 30, 2016 was related to net recoveries and loan portfolio growth during the period. Management believes the amount of ALLL is appropriate as of September 30, 2016. The unallocated reserve for loan losses at September 30, 2016 has decreased $0.6 million from the balance at December 31, 2015. Management believes that the amount of unallocated reserve for loan losses is appropriate and will continue to evaluate the amount going forward.

Acquired reserve for loan losses

The fair value estimates for acquired loans are based on expected prepayments, charge-offs, and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the acquired loans was $6.0 million and $2.3 million for Home and PPFS, respectively, at the time of acquisition representing a valuation adjustment for interest rate and credit quality. The credit portion of the fair value adjustment not accreted at any point in time represents the estimated reserve for loan losses for acquired loans. If the Company determines that this amount is insufficient, a provision to the reserve for loan losses will be made. As of September 30, 2016, the remaining net fair value adjustment was $1.9 million and $2.3 million for Home and PPFS, respectively, and no additional reserve for acquired loans was required.

16

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the three and nine months ended September 30, 2016 and 2015 were as follows (dollars in thousands):

	Commercial real estate		Construction		Residential real estate		Commercial  and  industrial			Consumer			Unallocated			Total
For the three months ended September 30, 2016
Allowance for Loan Losses
Balance at June 30, 2016	$	4,391	$	1,259	$	2,674	$	11,982		$	978		$	3,382		$	24,666
Loan loss provision (credit)	1,554		271		1,044		(1,766		)	441			(1,544		)	—
Recoveries	74		327		45		428			208			—			1,082
Loans charged off	—		—		—		(95		)	(415		)	—			(510		)
Balance at end of period	$	6,019	$	1,857	$	3,763	$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments
Balance at June 30, 2016	$	48	$	268	$	25	$	75		$	24		$	—		$	440
Provision for unfunded loan commitments	—		—		—		—			—			—			—
Balance at end of period	$	48	$	268	$	25	$	75		$	24		$	—		$	440
Reserve for credit losses
Reserve for loan losses	$	6,019	$	1,857	$	3,763	$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments	48		268		25		75			24			—			440
Total reserve for credit losses	$	6,067	$	2,125	$	3,788	$	10,624		$	1,236		$	1,838		$	25,678

17

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Commercial real estate			Construction		Residential real estate			Commercial  and  industrial			Consumer			Unallocated			Total
For the nine months ended September 30, 2016
Allowance for Loan Losses
Balance at December 31, 2015	$	3,934		$	1,044	$	2,075		$	13,969		$	917		$	2,476		$	24,415
Loan loss provision (credit)	(667		)	407		1,530			(1,554		)	922			(638		)	—
Recoveries	2,792			406		222			1,190			715			—			5,325
Loans charged off	(40		)	—		(64		)	(3,056		)	(1,342		)	—			(4,502		)
Balance at end of period	$	6,019		$	1,857	$	3,763		$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments
Balance at December 31, 2015	$	48		$	268	$	25		$	75		$	24		$	—		$	440
Provision for unfunded loan commitments	—			—		—			—			—			—			—
Balance at end of period	$	48		$	268	$	25		$	75		$	24		$	—		$	440
Reserve for credit losses
Reserve for loan losses	$	6,019		$	1,857	$	3,763		$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments	48			268		25			75			24			—			440
Total reserve for credit losses	$	6,067		$	2,125	$	3,788		$	10,624		$	1,236		$	1,838		$	25,678

18

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Commercial real estate			Construction			Residential real estate			Commercial  and  industrial			Consumer			Unallocated		Total
For the three months ended September 30, 2015
Allowance for Loan Losses
Balance at June 30, 2015	$	5,032		$	1,356		$	2,463		$	11,355		$	1,001		$	2,294	$	23,501
Loan loss provision (credit)	(490		)	(293		)	(162		)	(2,245		)	99			3,091		—
Recoveries	408			155			162			2,885			179			—		3,789
Loans charged off	—			—			(50		)	(293		)	(324		)	—		(667		)
Balance at end of period	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments
Balance at June 30, 2015	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Provision for unfunded loan commitments	—			—			—			—			—			—		—
Balance at end of period	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Reserve for credit losses
Reserve for loan losses	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments	48			268			25			75			24			—		440
Total reserve for credit losses	$	4,998		$	1,486		$	2,438		$	11,777		$	979		$	5,385	$	27,063

19

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Commercial real estate			Construction			Residential real estate			Commercial  and  industrial			Consumer			Unallocated		Total
For the nine months ended September 30, 2015
Allowance for Loan Losses
Balance at December 31, 2014	$	5,614		$	1,133		$	2,121		$	6,844		$	1,047		$	5,294	$	22,053
Loan loss provision (credit)	(4,397		)	(193		)	(60		)	2,024			535			91		(2,000		)
Recoveries	4,011			278			746			3,440			457			—		8,932
Loans charged off	(278		)	—			(394		)	(606		)	(1,084		)	—		(2,362		)
Balance at end of period	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments
Balance at December 31, 2014	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Provision for unfunded loan commitments	—			—			—			—			—			—		—
Balance at end of period	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Reserve for credit losses
Reserve for loan losses	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments	48			268			25			75			24			—		440
Total reserve for credit losses	$	4,998		$	1,486		$	2,438		$	11,777		$	979		$	5,385	$	27,063

20

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

An individual loan is impaired when, based on current information and events, management believes that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The following table presents the reserve for loan losses and the recorded investment in loans by portfolio segment and impairment evaluation method at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Reserve for loan losses						Recorded investment in loans
	Individually evaluated for impairment		Collectively evaluated for impairment		Total		Individually evaluated for impairment		Collectively evaluated for impairment		Total
September 30, 2016
Commercial real estate	$	74	$	5,945	$	6,019	$	4,329	$	960,451	$	964,780
Construction	—		1,857		1,857		—		182,981		182,981
Residential real estate	—		3,763		3,763		—		465,466		465,466
Commercial and industrial	25		10,524		10,549		7,471		397,798		405,269
Consumer	—		1,212		1,212		—		43,012		43,012
	$	99	$	23,301	23,400		$	11,800	$	2,049,708	$	2,061,508
Unallocated					1,838
					$	25,238
December 31, 2015
Commercial real estate	$	78	$	3,856	$	3,934	$	3,835	$	831,058	$	834,893
Construction	—		1,044		1,044		365		129,987		130,352
Residential real estate	—		2,075		2,075		18		298,372		298,390
Commercial and industrial	164		13,805		13,969		2,724		381,720		384,444
Consumer	—		917		917		—		39,850		39,850
	$	242	$	21,697	21,939		$	6,942	$	1,680,987	$	1,687,929
Unallocated					2,476
					$	24,415

The above reserve for loan losses includes an unallocated allowance of $1.8 million at September 30, 2016 and $2.5 million at December 31, 2015. The change in the unallocated allowance is due to the increase in qualitative factors impacting the reserve, partially offset by net recoveries.

The Company uses credit risk ratings, which reflect the Bank’s assessment of a loan’s risk or loss potential, for purposes of assessing the appropriate level of reserve for loan losses. The Bank’s credit risk rating definitions along with applicable borrower characteristics for each credit risk rating are as follows:

Acceptable

The borrower is a reasonable credit risk and demonstrates the ability to repay the loan from normal business operations. Loans are generally made to companies operating in an economy and/or industry that is generally sound. The borrower tends to operate in regional or local markets and has achieved sufficient revenues for the business to be financially viable. The borrowers financial performance has been consistent in normal economic times and has been average or better than average for its industry.

A loan can also be considered Acceptable even though the borrower may have some vulnerability to downturns in the economy due to marginally satisfactory working capital and debt service cushion. Availability of alternate financing sources may be limited or nonexistent. In some cases, the borrower’s management may have limited depth or continuity but is still considered capable. An adequate primary source of repayment is identified while secondary sources may be illiquid, more speculative, less readily identified, or reliant upon collateral liquidation. Loan agreements will be well defined, including several financial performance covenants and detailed operating covenants. This category also includes commercial loans to individuals with average or better than average capacity to repay.

21

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Pass-Watch

Loans are graded Pass-Watch when temporary situations increase the level of the Bank’s risk associated with the loan, and remain graded Pass-Watch until the situation has been corrected. These situations may involve one or more weaknesses in cash flow, collateral value or indebtedness that could, if not corrected within a reasonable period of time, jeopardize the full repayment of the debt. In general, loans in this category remain adequately protected by the borrower’s net worth and paying capacity, or pledged collateral.

Special Mention

A Special Mention credit has potential weaknesses that may, if not checked or corrected, weaken the loan or leave the Bank inadequately protected at some future date. Loans in this category are deemed by management of the Bank to be currently protected but reflect potential problems that warrant more than the usual management attention but do not justify a Substandard classification.

Substandard

Substandard loans are those inadequately protected by the net worth and paying capacity of the obligor and/or by the value of the pledged collateral, if any. Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision and borrowers are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants.

CRE and construction loans are classified Substandard when well-defined weaknesses are present which jeopardize the orderly liquidation of the loan. Well-defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, and/or the project’s failure to fulfill economic expectations. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Substandard loans also include impaired loans. Impaired loans bear the characteristics of Substandard loans as described above, and the Company has determined it does not expect timely payment of all contractually due interest and principal. Impaired loans may be adequately secured by collateral.

During the nine months ended September 30, 2016, the Bank saw relatively steady credit quality metrics. An improvement in Special Mention loans was partially offset by an increase in the Substandard portfolio. Increases in the Substandard loan balances were largely due to certain energy/mining sector SNCs included in commercial and industrial (“C&I”) loans. Aggregate portfolio exposure to the energy/mining sector is less than 1% of total loans outstanding.

22

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

The following table presents, by portfolio class, the recorded investment in loans by internally assigned grades at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Loan grades
	Acceptable		Pass-Watch		Special Mention		Substandard		Total
September 30, 2016
Originated loans (a):
Commercial real estate:
Owner occupied	$	266,610	$	6,811	$	1,091	$	6,389	$	280,901
Non-owner occupied	479,207		1,589		4,520		1,373		486,689
Total commercial real estate loans	745,817		8,400		5,611		7,762		767,590
Construction	168,558		—		—		—		168,558
Residential real estate	405,923		—		—		451		406,374
Commercial and industrial	340,082		10,274		5,173		23,171		378,700
Consumer	41,476		—		—		26		41,502
	$	1,701,856	$	18,674	$	10,784	$	31,410	$	1,762,724
Acquired loans (b):
Commercial real estate:
Owner occupied	$	89,484	$	2,441	$	1,563	$	1,614	$	95,102
Non-owner occupied	82,873		3,851		8,995		6,369		102,088
Total commercial real estate loans	172,357		6,292		10,558		7,983		197,190
Construction	14,363		—		—		60		14,423
Residential real estate	56,461		1,550		—		1,081		59,092
Commercial and industrial	24,750		557		588		674		26,569
Consumer	1,510		—		—		—		1,510
	$	269,441	$	8,399	$	11,146	$	9,798	$	298,784
Total loans:
Commercial real estate:
Owner occupied	$	356,094	$	9,252	$	2,654	$	8,003	$	376,003
Non-owner occupied	562,080		5,440		13,515		7,742		588,777
Total commercial real estate loans	918,174		14,692		16,169		15,745		964,780
Construction	182,921		—		—		60		182,981
Residential real estate	462,384		1,550		—		1,532		465,466
Commercial and industrial	364,832		10,831		5,761		23,845		405,269
Consumer	42,986		—		—		26		43,012
	$	1,971,297	$	27,073	$	21,930	$	41,208	$	2,061,508
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

23

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Loan grades
	Acceptable		Pass-Watch		Special Mention		Substandard		Total
December 31, 2015
Originated loans (a):
Commercial real estate:
Owner occupied	$	243,113	$	8,623	$	1,426	$	9,933	$	263,095
Non-owner occupied	411,137		9,825		4,522		5,895		431,379
Total commercial real estate loans	654,250		18,448		5,948		15,828		694,474
Construction	118,752		—		971		—		119,723
Residential real estate	236,574		—		—		510		237,084
Commercial and industrial	328,934		11,220		13,729		9,452		363,335
Consumer	38,350		—		—		12		38,362
	$	1,376,860	$	29,668	$	20,648	$	25,802	$	1,452,978
Acquired loans (b):
Commercial real estate:
Owner occupied	$	34,081	$	3,480	$	7,341	$	334	$	45,236
Non-owner occupied	71,334		2,751		9,386		11,712		95,183
Total commercial real estate loans	105,415		6,231		16,727		12,046		140,419
Construction	10,597		—		—		32		10,629
Residential real estate	60,151		—		—		1,155		61,306
Commercial and industrial	17,034		153		3,461		461		21,109
Consumer	1,485		—		—		3		1,488
	$	194,682	$	6,384	$	20,188	$	13,697	$	234,951
Total loans:
Commercial real estate:
Owner occupied	$	277,194	$	12,103	$	8,767	$	10,267	$	308,331
Non-owner occupied	482,471		12,576		13,908		17,607		526,562
Total commercial real estate loans	759,665		24,679		22,675		27,874		834,893
Construction	129,349		—		971		32		130,352
Residential real estate	296,725		—		—		1,665		298,390
Commercial and industrial	345,968		11,373		17,190		9,913		384,444
Consumer	39,835		—		—		15		39,850
	$	1,571,542	$	36,052	$	40,836	$	39,499	$	1,687,929
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

The following table presents, by portfolio class, an age analysis of past due loans, including loans placed on non-accrual at September 30, 2016 and December 31, 2015 (dollars in thousands):

30-89 days past due 90 days or more past due Total past due Current Total loans

24

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

September 30, 2016
Originated loans (a):
Commercial real estate:
Owner occupied	$	207	$	490	$	697	$	280,204	$	280,901
Non-owner occupied	—		—		—		486,689		486,689
Total commercial real estate loans	207		490		697		766,893		767,590
Construction	—		—		—		168,558		168,558
Residential real estate	2,625		—		2,625		403,749		406,374
Commercial and industrial	156		171		327		378,373		378,700
Consumer	203		26		229		41,273		41,502
	$	3,191	$	687	$	3,878	$	1,758,846	$	1,762,724
Acquired loans (b):
Commercial real estate:
Owner occupied	$	11	$	—	$	11	$	95,091	$	95,102
Non-owner occupied	—		—		—		102,088		102,088
Total commercial real estate loans	11		—		11		197,179		197,190
Construction	—		21		21		14,402		14,423
Residential real estate	1,172		586		1,758		57,334		59,092
Commercial and industrial	225		8		233		26,336		26,569
Consumer	28		—		28		1,482		1,510
	$	1,436	$	615	$	2,051	$	296,733	$	298,784
Total loans:
Commercial real estate:
Owner occupied	$	218	$	490	$	708	$	375,295	$	376,003
Non-owner occupied	—		—		—		588,777		588,777
Total commercial real estate loans	218		490		708		964,072		964,780
Construction	—		21		21		182,960		182,981
Residential real estate	3,797		586		4,383		461,083		465,466
Commercial and industrial	381		179		560		404,709		405,269
Consumer	231		26		257		42,755		43,012
	$	4,627	$	1,302	$	5,929	$	2,055,579	$	2,061,508
December 31, 2015
Originated loans (a):
Commercial real estate:
Owner occupied	$	1,020	$	719	$	1,739	$	261,356	$	263,095
Non-owner occupied	593		—		593		430,786		431,379
Total commercial real estate loans	1,613		719		2,332		692,142		694,474
Construction	—		—		—		119,723		119,723
Residential real estate	196		—		196		236,888		237,084
Commercial and industrial	346		239		585		362,750		363,335
Consumer	209		12		221		38,141		38,362
	$	2,364	$	970	$	3,334	$	1,449,644	$	1,452,978
Acquired loans (b):
Commercial real estate:

25

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Owner occupied	$	—	$	—	$	—	$	45,236	$	45,236
Non-owner occupied	2,049		—		2,049		93,134		95,183
Total commercial real estate loans	2,049		—		2,049		138,370		140,419
Construction	46		—		46		10,583		10,629
Residential real estate	748		534		1,282		60,024		61,306
Commercial and industrial	6		5		11		21,098		21,109
Consumer	53		—		53		1,435		1,488
	$	2,902	$	539	$	3,441	$	231,510	$	234,951
Total loans:
Commercial real estate:
Owner occupied	$	1,020	$	719	$	1,739	$	306,592	$	308,331
Non-owner occupied	2,642		—		2,642		523,920		526,562
Total commercial real estate loans	3,662		719		4,381		830,512		834,893
Construction	46		—		46		130,306		130,352
Residential real estate	944		534		1,478		296,912		298,390
Commercial and industrial	352		244		596		383,848		384,444
Consumer	262		12		274		39,576		39,850
	$	5,266	$	1,509	$	6,775	$	1,681,154	$	1,687,929
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

Loans contractually past due 90 days or more on which the Company continued to accrue interest were $0.06 million and $0.07 million at September 30, 2016 and December 31, 2015, respectively.

26

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

The following table presents information related to impaired loans, by portfolio class, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Impaired loans
	With a related allowance		Without a related allowance		Total recorded balance		Unpaid principal balance		Related allowance
September 30, 2016
Commercial real estate:
Owner occupied	$	815	$	1,004	$	1,819	$	2,437	$	54
Non-owner occupied	632		1,878		2,510		2,511		20
Total commercial real estate loans	1,447		2,882		4,329		4,948		74
Construction	—		—		—		—		—
Residential real estate	—		—		—		—		—
Commercial and industrial	76		7,395		7,471		11,119		25
Consumer	—		—		—		—		—
	$	1,523	$	10,277	$	11,800	$	16,067	$	99
December 31, 2015
Commercial real estate:
Owner occupied	$	1,032	$	2,157	$	3,189	$	4,285	$	73
Non-owner occupied	646		—		646		646		5
Total commercial real estate loans	1,678		2,157		3,835		4,931		78
Construction	—		365		365		365		—
Residential real estate	—		18		18		18		—
Commercial and industrial	2,539		185		2,724		3,366		164
Consumer	—		—		—		—		—
	$	4,217	$	2,725	$	6,942	$	8,680	$	242

The increase in impaired C&I loans relates to energy/mining SNCs. Aggregate portfolio exposure to the energy/mining sector is less than 1% of total loans outstanding. At September 30, 2016 and December 31, 2015, the total recorded balance of impaired loans in the above table included $0.6 million and $0.8 million, respectively, of troubled debt restructuring (“TDR”) loans which were not on non-accrual status.

The following table presents, by portfolio class, the average recorded investment in impaired loans for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Commercial real estate:
Owner occupied	$	1,912	$	3,063	$	2,129	$	3,225
Non-owner occupied	2,525		1,072		2,540		8,297
Total commercial real estate loans	4,437		4,135		4,669		11,522
Construction	—		443		—		543
Residential real estate	—		28		—		66
Commercial and industrial	7,462		2,712		7,534		2,815
Consumer	—		—		—		—
	$	11,899	$	7,318	$	12,203	$	14,946

27

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Interest income recognized for cash payments received on impaired loans for the three and nine months ended September 30, 2016 was $0.5 million and $1.1 million, respectively.

Information with respect to the Company’s non-performing loans, by portfolio class, at September 30, 2016 and December 31, 2015 is as follows (dollars in thousands):

	September 30, 2016		December 31, 2015
Commercial real estate:
Owner occupied	$	1,353	$	2,742
Non-owner occupied	2,711		434
Total commercial real estate loans	4,064		3,176
Construction	39		—
Residential real estate	1,443		1,427
Commercial and industrial	6,937		447
Consumer	—		3
Total non-accrual loans	$	12,483	$	5,053
Accruing loans which are contractually past due 90 days or more:
Construction	21		—
Commercial and industrial	12		56
Consumer	26		12
Total accruing loans which are contractually past due 90 days or more	$	59	$	68

TDRs

The Company allocated no specific reserves to customers whose loan terms had been modified in TDRs as of September 30, 2016 and December 31, 2015. TDRs involve the restructuring of loan terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. As indicated above, TDRs may also include loans to borrowers experiencing financial distress that renewed at existing contractual rates, but below market rates for comparable credit quality. The Company has been actively utilizing these programs and working with its customers to improve obligor cash flow and related prospects for repayment. Concessions may include, but are not limited to, interest rate reductions, principal forgiveness, deferral of interest payments, extension of the maturity date, and other actions intended to minimize potential losses to the Company. For each commercial loan restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the new structure can be successful and whether cash flows will be sufficient to support the restructured debt. Generally, if the loan is on accrual status at the time of restructuring, it will remain on accrual status after the restructuring. After six consecutive payments under the restructured terms, a non-accrual restructured loan is reviewed for possible upgrade to accrual status.

Typically, once a loan is identified as a TDR it will retain that designation until it is paid off, because restructured loans generally are not at market rates following restructuring. Under certain circumstances, a TDR may be removed from TDR status if it is determined to no longer be impaired and the loan is at a competitive interest rate. Under such circumstances, allowance allocations for loans removed from TDR status would be based on the historical allocation for the applicable loan grade and loan class.

There were no loans modified and recorded as TDRs during the three months ended September 30, 2016 and 2015.

The following table presents, by portfolio segment, the information with respect to the Company’s loans that were modified and recorded as TDRs during the nine months ended September 30, 2016 and 2015 (dollars in thousands).

28

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Nine months ended September 30,
	2016			2015
	Number of loans	TDR outstanding recorded investment		Number of loans	TDR outstanding recorded investment
Commercial real estate	—	$	—	—	$	—
Construction	—	—		—	—
Residential real estate	—	—		—	—
Commercial and industrial	1	22		—	—
Consumer	—	—		—	—
	1	$	22	—	$	—

At both September 30, 2016 and 2015, the Company had no remaining commitments to lend on loans accounted for as TDRs.

The following table presents, by portfolio segment, the post modification recorded investment for TDRs restructured during the nine months ended September 30, 2016.

Nine months ended September 30, 2016	Rate reduction		Term extension		Rate reduction and term extension		Total
Commercial real estate	$	—	$	—	$	—	$	—
Construction	—		—		—		—
Residential real estate	—		—		—		—
Commercial and industrial	—		22		—		22
Consumer	—		—		—		—
	$	—	$	22	$	—	$	22

There were no TDRs that had payment defaults during the nine months endedSeptember 30, 2016 or 2015 that had been previously restructured within the twelve months prior to September 30, 2016 or 2015.

5.    Other Real Estate Owned (“OREO”), net

The following table presents activity related to OREO for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	2,993		$	4,040		$	3,274		$	3,309
Additions	367			—			367			1,558
Dispositions	(1,683		)	(162		)	(1,964		)	(2,541		)
Change in valuation allowance	—			(7		)	—			1,545
Balances at end of period	$	1,677		$	3,871		$	1,677		$	3,871

The following table summarizes activity in the OREO valuation allowance for the periods shown (dollars in thousands):

29

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Three months ended    September 30,				Nine months ended    September 30,
	2016		2015		2016		2015
Balance at beginning of period	$	776	$	771	$	776	$	2,323
Additions to the valuation allowance	—		7		—		12
Reductions due to sales	—		—		—		(1,557		)
Balance at end of period	$	776	$	778	$	776	$	778

The following table summarizes OREO (income) expenses for the periods shown (dollars in thousands):

	Three months ended    September 30,					Nine months ended    September 30,
	2016			2015		2016			2015
Operating costs	$	49		$	53	$	215		$	159
Net (gains) losses on dispositions	(6		)	62		(246		)	(160		)
Increases in valuation allowance	—			7		167			12
Total	$	43		$	122	$	136		$	11

6.    Mortgage Servicing Rights (“MSRs”)

The Bank sells a predominant share of the fixed rate mortgage loans it originates into the secondary market while retaining servicing of such loans. Mortgage Servicing Rights (“MSRs”), included in other assets in the condensed consolidated financial statements as of September 30, 2016 and December 31, 2015, are accounted for at the lower of origination value less accumulated amortization or current fair value. The net carrying value of MSRs at September 30, 2016 and December 31, 2015 was $2.2 million. There was no valuation allowance at September 30, 2016 or December 31, 2015.

The following table presents activity in MSRs for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	2,229		$	2,276		$	2,186		$	2,248
Additions	197			130			579			506
Amortization	(180		)	(195		)	(519		)	(543		)
Balances at end of period	$	2,246		$	2,211		$	2,246		$	2,211

Mortgage banking income, net, consisted of the following for the periods shown (dollars in thousands):

30

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Origination and processing fees	70			94			249			538
Gain on sales of loans, net	752			551			2,004			1,582
Servicing fees	215			174			517			512
Amortization	(180		)	(195		)	(519		)	(543		)
Mortgage banking income, net	$	857		$	624		$	2,251		$	2,089

7.     Goodwill and other intangible assets

At close of business on August 1, 2016, the Company completed the PPFS acquisition. The Company recorded $2.2 million of goodwill in connection with the PPFS acquisition.

On March 4, 2016, the Bank completed the branch acquisition. The Company recorded $4.0 million of goodwill in connection with the branch acquisition.

The Company recorded $78.6 million of goodwill in connection with the acquisition of Home in 2014. In accordance with the Intangibles - Goodwill and Other topic of the Financial Accounting Standards Board (“FASB”) ASC, goodwill is not amortized but is reviewed for potential impairment at the reporting unit level. Management analyzes its goodwill for impairment on an annual basis and between annual tests in certain circumstances, such as upon material adverse changes in legal, business, regulatory and economic factors. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. The Company performed an impairment assessment as of December 31, 2015 and concluded that there was no impairment to goodwill.

Core deposit intangibles (“CDI”) are evaluated for impairment if events and circumstances indicate a possible impairment. The CDI are amortized on a straight-line basis over an estimated life of 10 years. The following table sets forth activity for CDI for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands).

	Three months ended September 30,						Nine months ended   September 30,
	2016			2015			2016			2015
Gross CDI balance, beginning of period	$	14,623		$	8,196		$	8,196		$	8,196
Accumulated amortization, beginning of period	(1,903		)	(923		)	(1,333		)	(513		)
CDI, net, beginning of period	12,720			7,273			6,863			7,683
Established through acquisitions	342			—			6,770			—
CDI current period amortization	(371		)	(205		)	(942		)	(615		)
Total CDI, end of period	$	12,691		$	7,068		$	12,691		$	7,068

The following table provides the estimated future amortization expense of CDI for the remaining period ending December 31, 2016 and the succeeding four years (dollars in thousands):

Years Ending December 31,
2016	$	374
2017	1,497
2018	1,497
2019	1,497
2020	1,497

31

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

8.    Basic and Diluted Net Income per Share

The Company’s basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company’s diluted net income per share is computed by dividing net income by the weighted-average number of common shares outstanding plus any incremental shares arising from the dilutive effect of stock-based compensation.

The numerators and denominators used in computing basic and diluted net income per common share for the three and nine months ended September 30, 2016 and 2015 can be reconciled as follows (dollars in thousands, except per share data):

	Three months ended    September 30,				Nine months ended    September 30,
	2016		2015		2016		2015
Net income	$	4,089	$	5,099	$	10,853	$	15,012
Weighted-average shares outstanding - basic	74,001,997		71,868,045		72,532,961		71,743,576
Dilutive securities	167,268		101,323		1,342,762		105,835
Weighted-average shares outstanding - diluted	74,169,265		71,969,368		73,875,723		71,849,411
Common stock equivalent shares excluded due to antidilutive effect	3,319,862		3,361,774		3,348,537		3,361,774
Basic and diluted:
Net income per common share	$	0.06	$	0.07	$	0.15	$	0.21
Net income per common share (diluted)	$	0.06	$	0.07	$	0.15	$	0.21

9.    Stock-Based Compensation

At September 30, 2016, 1,621,245 shares reserved under the Company’s stock-based compensation plans were available for future grants.

During the nine months ended September 30, 2016, 678,051 shares of restricted stock, which vest between 2016 and 2021, were granted with a weighted-average grant date fair value of $5.69. During the same period, the Company converted existing PPFS stock options into 14,222 Cascade Bancorp stock options with a weighted-average exercise price of $3.71 per share, of which 100% were vested upon conversion. During the nine months ended September 30, 2015, the Company granted 397,472 shares of restricted stock, which vest between 2016 and 2020, with a weighted-average grant date fair value of $4.98 per share. During the same period, 3,300,000 stock options, which vest over a three to five year period, were granted. The Company used the Black-Scholes option-pricing model with the following weighted-average assumptions to value options that were granted in 2015: 

	2015
Dividend yield	0	%
Expected volatility	36.6	%
Risk-free interest rate	1.3	%
Expected option lives	5.0 years

The dividend yield was based on historical dividend information. The Company has not paid dividends since the third quarter of 2008 resulting in the dividend yield of 0.0%. The expected volatility was based on the historical volatility of the Company’s common stock price as adjusted for certain historical periods of extraordinary volatility in order to provide a basis for a reasonable estimate of fair value. Periods that were determined to be extraordinary were replaced with the mean volatility of like publicly-traded community banks in the western U.S. Over time, identified periods of extraordinary volatility will recede and will be replaced with the Company’s actual historical volatility. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the date of grant for periods corresponding with the expected lives of the options granted. The expected option lives

32

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

represent the period of time that options are expected to be outstanding, giving consideration to vesting schedules and historical exercise and forfeiture patterns.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of publicly-traded options that have no vesting restrictions and are fully transferable.  The Black-Scholes model is affected by subjective assumptions, including historical volatility of the Company’s common stock price.  

The following table presents the activity related to stock options for the nine months ended September 30, 2016 and 2015:

	Options		Weighted- average exercise price		Weighted- average remaining contractual term (years)	Aggregate intrinsic value (000)
Options outstanding at January 1, 2016	3,375,909		$	5.44	9.0	$	4,243.7
Granted	14,222		3.71		8.4	29.9
Canceled / forfeited	(234	)	78.08		N/A	N/A
Exercised	(1,449	)	3.61		N/A	N/A
Expired	(1,697	)	209.87		N/A	N/A
Options outstanding at September 30, 2016	3,386,751		$	5.33	8.3	$	4,240.0
Options exercisable at September 30, 2016	86,751		$	25.78	4.7	$	49.0
Options outstanding at January 1, 2015	85,901		$	34.86	5.7	$	—
Granted	3,300,000		4.79		9.3	2,046.0
Canceled / forfeited	(8,011	)	19.52		N/A	N/A
Expired	(1,691	)	$	151.20	N/A	N/A
Options outstanding at September 30, 2015	3,376,199		$	5.45	9.2	$	2,046.0
Options exercisable at September 30, 2015	63,212		39.72		4.5	$	—

Stock-based compensation expense related to stock options for the nine months ended September 30, 2016 and 2015 was $0.8 million and $0.7 million, respectively. As of September 30, 2016, there was approximately $3.6 million of unrecognized compensation cost related to non-vested stock options that will be recognized over the remaining vesting periods of the stock options.

The following table presents the activity related to non-vested restricted stock for the nine months endedSeptember 30, 2016:

	Number of shares		Weighted- average grant date fair value per share
Non-vested as of January 1, 2016	909,410		$	6.37
Granted	678,051		5.69
Vested	(333,688	)	5.24
Canceled / forfeited	(42,317	)	4.94
Non-vested as of September 30, 2016	1,211,456		$	6.35

Non-vested restricted stock is scheduled to vest over a three to five year period. The unearned compensation on restricted stock is being amortized to expense on a straight-line basis over the estimated applicable service or vesting periods. As of September 30, 2016, unrecognized compensation cost related to non-vested restricted stock totaled approximately $5.5 million, which is expected to be recognized over the next five years. Total expense recognized by the Company for non-vested restricted stock for the nine months endedSeptember 30, 2016 and 2015 was $1.5 million and $1.0 million, respectively. There was $0.3 million unrecognized

33

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

compensation cost related to restricted stock units (“RSUs”) at September 30, 2016 and no unrecognized compensation cost related to RSUs at December 31, 2015.

10.      Interest Rate Swap Derivatives

Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company obtains dealer quotation to value its derivative contracts.

The Company periodically enters into certain commercial loan interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rates. Under these agreements, the Company provides the customer with a variable rate loan and enters into an interest rate swap in which the customer receives a variable rate payment in exchange for a fixed rate payment. The Company offsets its risk exposure by entering into an offsetting interest rate swap with a dealer counterparty for the same notional amount and length of term as the customer interest rate swap providing the dealer counterparty with a fixed rate payment in exchange for a variable rate payment. Generally, these instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors.

The Company is exposed to credit-related losses in the event of non-performance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and management does not expect the counterparties to fail their obligations.

In connection with the interest rate swaps between the Company and the dealer counterparties, the agreements contain a provision that if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations. Similarly, the Company could be required to settle its obligations under certain of its agreements if certain credit ratings fall below specified standards or if specific regulatory events occur, such as a publicly issued memorandum of understanding, cease and desist order, or a termination of insurance coverage by the FDIC.

As of September 30, 2016 and December 31, 2015, the notional values or contractual amounts and fair values of the Company’s derivatives not designated in hedge relationships were as follows (dollars in thousands):

	Asset Derivatives								Liability Derivatives
	September 30, 2016				December 31, 2015				September 30, 2016				December 31, 2015
	Notional/ Contract Amount		Fair Value (1)		Notional/ Contract Amount		Fair Value (1)		Notional/ Contract Amount		Fair Value (2)		Notional/ Contract Amount		Fair Value (2)
Interest rate swaps	$	194,485	$	18,097	$	169,720	$	8,646	$	194,485	$	18,097	$	169,720	$	8,646
(1) Included in Other Assets on the condensed consolidated balance sheet.
(2) Included in Other Liabilities on the condensed consolidated balance sheet.

Swap fee income, as included in non-interest income, was $0.7 million and $1.8 million for the three and nine months ended September 30, 2016, respectively, and $0.6 million and $1.9 million for the three and nine months ended September 30, 2015, respectively.

The Company generally posts collateral against derivative liabilities in the form of cash. Collateral posted against derivative liabilities was $19.5 million and $8.6 million as of September 30, 2016 and December 31, 2015, respectively.

34

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

Derivative assets and liabilities are recorded at fair value on the balance sheet and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis and to offset net derivative position with related collateral where applicable.

The following table illustrates the potential effect of the Company’s derivative master netting arrangements, by type of financial instrument, on the Company’s condensed consolidated balance sheet as of September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
							Gross Amounts of Financial Instruments Not Offset in the Balance Sheet
	Gross Amounts Recognized		Amounts offset in the Balance Sheet		Net Amounts in the Balance Sheet		Netting Adjustment Per Applicable Master Netting Agreements		Fair Value of Financial Collateral in the Balance Sheet		Net Amount
Asset Derivatives
Interest rate swaps	$	18,097	$	—	$	18,097	$	—	$	—	$	18,097
Liability Derivatives
Interest rate swaps	$	18,097	$	—	$	18,097	$	—	$	19,525	$	(1,428	)
	December 31, 2015
							Gross Amounts of Financial Instruments Not Offset in the Balance Sheet
	Gross Amounts Recognized		Amounts offset in the Balance Sheet		Net Amounts in the Balance Sheet		Netting Adjustment Per Applicable Master Netting Agreements		Fair Value of Financial Collateral in the Balance Sheet		Net Amount
Asset Derivatives
Interest rate swaps	$	8,646	$	—	$	8,646	$	—	$	—	$	8,646
Liability Derivatives
Interest rate swaps	$	8,646	$	—	$	8,646	$	—	$	8,595	$	51

11.    Income Taxes

In assessing the realizability of deferred tax assets (“DTA”), management considers whether it is more likely than not that some portion or all of the DTA will or will not be realized. The Company’s ultimate realization of the DTA is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables.

During the three and nine months ended September 30, 2016, the Company recorded a $2.4 million and $6.4 million income tax provision, respectively. During the three and nine months ended September 30, 2015, the Company recorded a $2.6 million and $8.6 million income tax provision, respectively. As of September 30, 2016, the net DTA was $46.2 million compared with a net DTA of $50.7 million as of December 31, 2015. During the third quarter and first nine months of 2016 and 2015, the Company’s current taxes consisted of federal and state alternative minimum taxes and other state minimum taxes. The Company’s estimated effective income tax rate differs from the statutory income tax rate primarily due to the exclusion of certain BOLI and municipal bond interest income from taxable income. 

35

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

There are a number of tax issues that impact the deferred tax asset balance, including changes in temporary differences between the financial statement recognition of revenue and expenses, estimates as to the deductibility of prior losses and potential consequence of Section 382 of the Internal Revenue Code. See also “Critical Accounting Policies and Accounting Estimates - Deferred Income Taxes” included in Part II, Item 7 of the 2015 Annual Report.

12.    Fair Value Measurements

GAAP establishes a hierarchy for determining fair value measurements that includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

• Level 1: Inputs that are quoted unadjusted prices in active markets - that the Company has the ability to access at the measurement date - for identical assets or liabilities.

• Level 2: Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs derived principally from, or corroborated by, observable market data by correlation or other means.

• Level 3: Inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s assets and liabilities carried at fair value. Where available, fair value is based upon quoted market prices. Significant balances of the Bank’s financial assets and liabilities do not have quoted market prices. In such circumstances, fair value is based upon internal or third party models that primarily use, as inputs, observable market-based parameters, such as yields and discount rates of comparable instruments of like duration or credit quality. Valuation adjustments may be made to model results with respect to various assets or liabilities. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes that the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain assets and liabilities could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the condensed consolidated balance sheet date may differ significantly from the amounts presented herein.

The following is a description of the valuation methodologies used for assets measured at fair value on a recurring or nonrecurring basis, as well as the general classification of such assets pursuant to valuation hierarchy:

Investment securities available-for-sale: Where quoted prices for identical assets are available in an active market, investment securities available-for-sale are classified within level 1 of the hierarchy. If quoted market prices for identical securities are not available, then fair values are estimated by independent sources using pricing models and/or quoted prices of investment securities with similar characteristics or discounted cash flows. The Company has categorized its investment securities available-for-sale as level 2, since a majority of such securities are MBS which are mainly priced in this latter manner.

Interest rate swap derivatives: The fair value of the interest rate lock commitments and forward sales commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The fair value of the interest rate swaps is determined using a discounted cash flow technique with values provided by third party swap dealers or consultants. The Company has determined that the majority of the inputs used to value its interest rate swap derivatives fall within Level 2.

Impaired loans: In accordance with GAAP, loans are measured for impairment using one of three methods: an observable market price (if available), the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the fair value of the loan’s collateral (if collateral dependent). Estimated fair value of the loan’s collateral is determined by appraisals or independent valuations which are then adjusted for the estimated costs related to liquidation of the collateral. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to valuation based upon more recent

36

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

market sales activity or more current appraisal information derived from properties of similar type and/or locale. A significant portion of the Bank’s impaired loans are measured using the estimated fair market value of the collateral less the estimated costs to sell. The Company has categorized all its loans impaired during the calendar year utilizing fair value metrics as level 3. Loans that were impaired during the calendar year based on the present value of expected future cash flows discounted at the loans’ effective interest rates are not included in the table below as the loans’ effective interest rates are not based on current market rates.

OREO: The Company’s OREO is measured at estimated fair value less estimated costs to sell. Fair value is generally determined based on third-party appraisals of fair value in an orderly sale. Historically, appraisals have considered comparable sales of like assets in reaching a conclusion as to fair value. Since many recent real estate sales could be termed “distressed sales”, and since a preponderance have been short-sale or foreclosure related, this has directly impacted appraisal valuation estimates. Estimated costs to sell OREO are based on standard market factors. The valuation of OREO is subject to significant external and internal judgment. Management periodically reviews OREO to determine whether the property continues to be carried at the lower of its recorded book value or estimated fair value, net of estimated costs to sell. The Company has categorized its OREO as level 3.

The Company’s only financial assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015 were as follows (dollars in thousands):

	Level 1		Level 2		Level 3
September 30, 2016
Assets:
Investment securities available-for-sale	$	—	$	523,275	$	—
Interest rate swap derivatives	—		18,097		—
Total assets	$	—	$	541,372	$	—
Liabilities:
Interest rate swap derivatives	$	—	$	18,097	$	—
December 31, 2015
Assets:
Investment securities available-for-sale	$	—	$	310,262	$	—
Interest rate swap derivatives	—		8,646		—
Total assets	$	—	$	318,908	$	—
Liabilities:
Interest rate swap derivatives	—		8,646		—

Certain assets are measured at fair value on a nonrecurring basis (e.g., the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments when there is evidence of impairment). The following table represents the assets measured at fair value on a nonrecurring basis by the Company at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Level 1		Level 2		Level 3
September 30, 2016
Impaired loans	$	—	$	—	$	85
Other real estate owned	—		—		1,677
	$	—	$	—	$	1,762
December 31, 2015
Impaired loans	$	—	$	—	$	50
Other real estate owned	—		—		3,274
	$	—	$	—	$	3,324

37

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	85	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	1,677	Market approach	Appraised value less selling costs of 5% to 10%
	December 31, 2015
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	50	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	3,274	Market approach	Appraised value less selling costs of 5% to 10%

The Company did not change the methodology used to determine fair value for any assets or liabilities during the nine months ended September 30, 2016 or during 2015. In addition, for any given class of assets, the Company did not have any transfers between level 1, level 2, or level 3 during the nine months ended September 30, 2016 or during 2015.

The following disclosures are made in accordance with the provisions of GAAP, which requires the disclosure of fair value information about financial instruments where it is practicable to estimate that value.

In cases where quoted market values are not available, the Company primarily uses present value techniques to estimate the fair value of its financial instruments. Valuation methods require considerable judgment, and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Accordingly, the estimates provided herein do not necessarily indicate amounts which could be realized in a current market exchange.

In addition, as the Company normally intends to hold the majority of its financial instruments until maturity, it does not expect to realize many of the estimated amounts disclosed. The disclosures also do not include estimated fair value amounts for items which are not defined as financial instruments but which may have significant value. The Company does not believe that it would be practicable to estimate a representational fair value for these types of items as of September 30, 2016 and December 31, 2015.

Because GAAP excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements, any aggregation of the fair value amounts presented would not represent the underlying value of the Company.

The Company uses the following methods and assumptions to estimate the fair value of its financial instruments:

Cash and cash equivalents:  The carrying amount approximates the estimated fair value of these instruments.

Investment securities: See above description.

FHLB stock:  The carrying amount approximates the estimated fair value of this investment.

Loans:  The estimated fair value of non-impaired loans is calculated by discounting the contractual cash flows of the loans using September 30, 2016 and December 31, 2015 origination rates. The resulting amounts are adjusted to estimate the effect of changes in the credit quality of borrowers since the loans were originated. Estimated fair values for impaired loans are determined using an observable market price (if available) or the fair value of the loan’s collateral (if collateral dependent) as described above. Observable market prices for community bank loans are not generally available given the non-homogenous characteristics of such loans.

38

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

BOLI: The carrying amount of both the separate and general account BOLI approximates the estimated fair value of these instruments. Fair values of insurance policies owned are based on the insurance contracts’ cash surrender values.

MSRs: The estimated fair value of MSRs is calculated by discounting the expected future contractual cash flows. Factors considered in the estimated fair value calculation include prepayment speed forecasts, market discount rates, earning rates, servicing costs, acquisition costs, ancillary income, and borrower rates.

Deposits:  The estimated fair value of demand deposits, consisting of checking, interest bearing demand, and savings deposit accounts, is represented by the amounts payable on demand. At the reporting date, the estimated fair value of time deposits is calculated by discounting the scheduled cash flows using the September 30, 2016 and December 31, 2015 rates offered on those instruments.

Other borrowings: The fair value of other borrowings (including federal funds purchased, if any) is estimated using discounted cash flow analysis based on the Bank’s September 30, 2016 and December 31, 2015 incremental borrowing rates for similar types of borrowing arrangements.

Loan commitments and standby letters of credit: The majority of the Bank’s commitments to extend credit have variable interest rates and “escape” clauses if the customer’s credit quality deteriorates. Therefore, the fair values of these items are not significant and are not included in the following table.

The estimated fair values of the Company’s significant on-balance sheet financial instruments at September 30, 2016 and December 31, 2015 were approximately as follows (dollars in thousands):

		September 30, 2016				December 31, 2015
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	152,360	$	152,360	$	77,805	$	77,805
Investment securities:
Available-for-sale	Level 2	523,275		523,275		310,262		310,262
Held-to-maturity	Level 2	141,326		148,213		139,424		142,260
FHLB stock	Level 2	3,270		3,270		3,000		3,000
Loans held-for-sale	Level 2	9,478		9,478		3,621		3,621
Loans, net	Level 3	2,034,353		2,043,932		1,662,095		1,656,986
BOLI	Level 3	56,708		56,708		54,450		54,450
MSRs	Level 3	2,246		2,686		2,186		3,027
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646
Financial liabilities:
Deposits	Level 2	2,745,081		2,744,387		2,083,088		2,082,748
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646

13.      Regulatory Matters

Bancorp and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Bancorp and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory

39

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

accounting practices. Bancorp’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to provide for capital adequacy require Bancorp and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Tier 1 capital to average assets, common equity Tier 1 capital to risk-weighted assets (“CET1”), and Tier 1 and total capital to risk-weighted assets (all as defined in the regulations).

Federal banking regulators are required to take prompt corrective action if an insured depository institution fails to satisfy certain minimum capital requirements. Such actions could potentially include a leverage capital limit, a risk-based capital requirement, and any other measure of capital deemed appropriate by the federal banking regulator for measuring the capital adequacy of an insured depository institution. In addition, payment of dividends by Bancorp and the Bank are subject to restriction by state and federal regulators and availability of retained earnings.

In July 2013, the Board of Governors of the Federal Reserve System and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III”). Under the final rules, which became effective for the Bancorp and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements increased for both the quantity and quality of capital held by the Bancorp and the Bank. The rules include a CET1ratio of 4.5% and a capital conservation buffer of 2.5% above the regulatory minimum risk-based capital requirements, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. Basel III also (i) raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), (ii) effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and (iii) requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures.

Bancorp’s and Bank’s actual capital amounts and ratios and the required capital ratios under the prompt corrective action framework as of September 30, 2016 and December 31, 2015 are presented in the following table (dollars in thousands): 

40

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

	Actual				Regulatory minimum to be “adequately capitalized”				Basel III Minimum Capital Adequacy with Capital Conservation Buffer		Regulatory minimum to be “well capitalized”
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount	Ratio	Capital Amount		Ratio
September 30, 2016
Tier 1 leverage (to average assets)
Bancorp	$	249,431	8.4	%	$	119,171	4.0	%	N/A	N/A	$	148,964	5.0	%
Bank	245,681		8.3	%	119,062		4.0	%	N/A	N/A	148,828		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	249,431		10.4		108,234		4.5		122,665	5.1	156,338		6.5
Bank	245,681		10.2		108,242		4.5		122,674	5.1	156,349		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	249,431		10.4		144,312		6.0		158,743	6.6	192,416		8.0
Bank	245,681		10.2		144,322		6.0		158,755	6.6	192,430		8.0
Total capital (to risk-weighted assets)
Bancorp	275,112		11.4		192,416		8.0		206,847	8.6	240,520		10.0
Bank	271,362		11.3		192,430		8.0		206,862	8.6	240,537		10.0
December 31, 2015
Tier 1 leverage (to average assets)
Bancorp	$	227,542	9.4	%	$	96,817	4.0	%	N/A	N/A	$	121,022	5.0	%
Bank	223,533		9.3	%	96,662		4.0	%	N/A	N/A	120,827		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	227,542		11.5		88,818		4.5		N/A	N/A	128,292		6.5
Bank	223,533		11.4		88,663		4.5		N/A	N/A	128,069		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	227,542		11.5		118,424		6.0		N/A	N/A	157,898		8.0
Bank	223,533		11.4		118,218		6.0		N/A	N/A	157,624		8.0
Total capital (to risk-weighted assets)
Bancorp	252,401		12.8		157,898		8.0		N/A	N/A	197,373		10.0
Bank	248,346		12.6		157,624		8.0		N/A	N/A	197,030		10.0

14.      Commitments and Contingencies

The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business.  While the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.

15.      New Authoritative Accounting Guidance

In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (“ASU 2016-15”). ASU 2016-15 addresses the classification of debt prepayment or debt extinguishment

41

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of Corporate-Owned Life Insurance policies, including Bank-Owned Life Insurance policies, distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (“ASU 2016-13”). ASU 2016-13 requires financial assets that are measured at amortized cost to be presented as the net amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets and for the expected increase or decrease of expected credit losses. ASU 2016-13 notes that credit losses related to available-for-sale debt securities should be recorded through an allowance for credit losses. The initial allowance for credit losses, for purchased available-for-sale securities, is added to the purchase price rather than reported as a credit loss expense. Subsequent changes in the allowance are recorded as credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount attributed to the assessment of credit loss at acquisition. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 describes simplifications related to accounting and presenting share-based payment awards. ASU 2016-09 states that excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit in the income statement; excess tax benefits should be classified with other income tax as an operating activity on the statement of cash flows; an entity may make an entity-wide accounting policy to either estimate the number of awards that are expected to vest or account for forfeitures as they occur; and cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Adoption of ASU 2016-09 is not expected to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 simplifies the impairment assessment of equity investments, clarifies reporting disclosure requirements for financial instruments measured at amortized cost, and requires the exit price notion be disclosed when measuring fair value of financial instruments. ASU 2016-01 details the required separate presentation in other comprehensive income for the change in fair value of a liability related to change in instrument specific credit risk and details the required separate presentation of financial assets and liabilities by measurement category, and clarifies the need for a valuation allowance on deferred tax assets related to available-for-sale securities. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. Adoption of ASU 2016-01 is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest- Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs and requires that the debt issuance costs related to a recognized debt liability be presented in the balance sheet as direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in this update. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Adoption of ASU 2015-03 is not expected to have a material impact on our consolidated financial statements.

42

Cascade Bancorp & Subsidiary

Notes to Condensed Consolidated Financial Statements

September 30, 2016

(unaudited)

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016 with three transition methods available - full retrospective, retrospective and cumulative effect approach. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date” (“ASU 2015-14”). ASU 2015-14 amended the effective date to December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal Versus Agent Considerations” (“ASU 2016-08”). ASU 2016-08 defines the roles of a principal and agent in revenue recognition and determines when control of the good or service is transferred to the customer. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (“ASU 2016-10”). ASU 2016-10 establishes guidance on identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers: Narrow- Scope Improvements and Practical Expedients" (“ASU 2016-12”). ASU 2016-12 clarifies the objective of the collectability criteria and notes the differences in applying the update at transition and on an ongoing basis. Adoption of ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, and ASU 2016-12 is not expected to have a material effect on our consolidated financial statements.

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ITEM 2.       MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the Company’s unaudited condensed consolidated financial statements and the notes thereto, included elsewhere in this Quarterly Report on Form 10-Q (“Form 10-Q”). This discussion highlights key information as determined by management but may not contain all of the information that is important to you. For a more complete understanding, the following should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 4, 2016 (the “2015 Annual Report”), including its audited 2015 consolidated financial statements and the notes thereto as of December 31, 2015 and 2014 and for each of the years in the three-year period ended December 31, 2015.

In this Form 10-Q, please note that “we,” “our,” “us,” “Cascade” or the “Company” refer collectively to Cascade Bancorp (“Bancorp”), an Oregon chartered single bank holding company, and its wholly-owned subsidiary, Bank of the Cascades (the “Bank”).

Cautionary Information Concerning Forward-Looking Statements

This Form 10-Q contains forward-looking statements about the Company’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 words “expects,” “believes,” “anticipates,” “could,” “may,” “will,” “should,” “plan,” “predicts,” “projections,” “continue,” "indicate" 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. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: the general condition of, and changes in, the economy of the States of Oregon, Idaho and Washington generally, and Central, Southern, Coastal and Northwest Oregon, as well as the greater Boise/Treasure Valley, Idaho and greater Seattle, Washington areas; our ability to maintain asset quality and expand our market share or net interest margin; our ability to integrate future whole bank and/or branch acquisitions; and expected cost savings, synergies and other related benefits of our acquisitions of Home Federal Bancorp, Inc. (“Home”), Prime Pacific Financial Services, Inc. (“PPFS”) and Bank of America, National Association branches might not be realized within the expected timeframe and costs or difficulties relating to the integration might be greater than expected. Further, actual results may be affected by competition with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. Certain risks and uncertainties, and the Company’s success in managing such risks and uncertainties, could cause actual results to differ materially from those projected, including, among others, the risk factors disclosed in Part I - Item 1A of the 2015 Annual Report. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations.

These forward-looking statements speak only as of the date of this Form 10-Q. The Company undertakes no obligation to publish revised forward-looking statements to reflect the occurrence of unanticipated events or circumstances after the date hereof, except as required by applicable law. Readers should carefully review all disclosures filed by the Company from time to time with the SEC.

 Critical Accounting Policies and Accounting Estimates

Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements for the year ended December 31, 2015 included in our 2015 Annual Report. Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. We believe that our most critical accounting policies upon which our financial condition depends, and which involve the most complex or subjective decisions or assessments are as follows.

Reserve for Credit Losses

The Company’s reserve for credit losses provides for estimated losses based upon evaluations of known and inherent risks in the loan portfolio and related loan commitments. Arriving at an estimate of the appropriate level of reserve for credit losses (which consists of the Company’s reserve for loan losses and reserve for loan commitments) involves a high degree of judgment and assessment of multiple variables that result in a methodology with relatively complex calculations and analysis. Management uses historical information to assess the adequacy of the reserve for loan losses and considers qualitative factors, including national and local macroeconomic conditions, real estate market behavior and a range of other factors, in its determination of the reserve.

44

On an ongoing basis, the Company seeks to enhance and refine its methodology such that the reserve is at an appropriate level and responsive to changing conditions.

The reserve for loan losses is increased by provisions for loan losses and by recoveries of loans previously charged-off and reduced by loans charged-off. The reserve for loan commitments is increased and decreased through non-interest expense. For a full discussion of the Company’s methodology of assessing the adequacy of the reserve for credit losses, see “Loan Portfolio and Credit Quality” in Item 7 of our 2015 Annual Report.

Deferred Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision (credit) for income taxes. A valuation allowance, if needed, reduces deferred tax assets to the expected amount to be realized.

Deferred tax assets are recognized subject to management’s judgment that realization is “more likely than not.” Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. Tax benefits not meeting our realization criteria represent unrecognized tax benefits. We account for interest and penalties as a component of income tax expense.

The Company reversed its deferred tax asset (“DTA”) valuation allowance as of June 30, 2013 due to management’s determination that it was more likely than not that a significant portion of the Company’s DTA would be realized. Management’s determination resulted from consideration of both the positive and negative evidence available that can be objectively verified.

As of September 30, 2016 and December 31, 2015, the Company had a net DTA of $46.2 million and $50.7 million, respectively, with the decrease from the prior period due primarily to current period net income. There are a number of tax issues that impact the DTA balance, including changes in temporary differences between the financial statement and tax recognition of revenue and expenses and estimates as to the deductibility of prior losses.

Other Real Estate Owned (“OREO”) and Foreclosed Assets

OREO and other foreclosed assets acquired through loan foreclosure are initially recorded at estimated fair value less costs to sell when acquired, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the reserve for loan losses. Due to the subjective nature of establishing the asset’s fair value when it is acquired, the actual fair value of the OREO or foreclosed asset could differ from the original estimate. If it is determined that fair value declines subsequent to foreclosure, a valuation allowance is recorded through non-interest expense. Operating costs associated with the assets after acquisition are also recorded as non-interest expense. Gains and losses on the disposition of OREO and foreclosed assets are netted and posted to other non-interest expenses.

Goodwill

Goodwill from an acquisition is the value attributable to unidentifiable intangible elements acquired. At a minimum, annual evaluation of the value of goodwill is required.

An entity may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Factors assessed include all relevant events and circumstances including macroeconomic conditions, industry and market conditions, cost factors that have a negative effect on earnings and cash flows, overall financial performance, other relevant entity or reporting unit specific events and, if applicable, a sustained decrease in share price. If after assessing the totality of events or circumstances, such as those described above, an entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity shall perform a two-step impairment test.

The first step of the impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the impairment test shall be performed to measure the amount of impairment loss, if any, when it is more likely than not that goodwill impairment exists.

The second step of the impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess.

In relation to the goodwill recognized with the PPFS acquisition, Bank of America branch acquisition, and Home acquisition, management concluded as of September 30, 2016 and December 31, 2015 that there have been no material events or circumstances that have changed since the initial recognition of goodwill on August 1, 2016, March 4, 2016, and May 16, 2014, respectively, the dates the PPFS acquisition, Bank of America branch acquisition, and Home acquisition were completed, that lead management

45

to believe it is more likely than not that the fair value of the Bank is less than its carrying amount. Therefore, no further testing is deemed necessary.

Economic Conditions

The Company’s banking business is closely tied to the economies of Idaho, Oregon and Washington, which in turn are influenced by regional and national economic trends and conditions. Idaho, Oregon and Washington have recently been experiencing improved economic trends, including population in-migration, gains in employment and increased commercial business and real estate activity. National and regional economies and real estate prices have stabilized, as has business and consumer confidence. The Company’s markets, however, continue to be sensitive to general economic trends and conditions, including real estate values, and an unforeseen economic shock or a return of adverse economic conditions could cause deterioration of local economies and adversely affect the Company’s business, financial condition and results of operations.

Financial Highlights

Net income for the third quarter of 2016 was $4.1 million, or $0.06 per share. Net income for the second quarter of 2016 (“linked quarter”) was $4.8 million, or $0.07 per share. The third quarter earnings were negatively affected by non-recurring expense items of $2.6 million (pre-tax), or $0.02 per share (post tax), mainly related to the PPFS acquisition and certain branch consolidation costs.

The acquisition of PPFS was completed at the close of business on August 1, 2016, with customer system conversion accomplished in late October. PPFS is headquartered in Lynnwood, Washington at the northern intersection of the I-5 and I-405 traffic corridors. This location complements Cascade Bancorp’s existing downtown Seattle commercial banking location. The Bank assumed approximately $102.8 million of loans and $101.5 million of deposits, for a purchase price of $16.2 million in the form of 2,921,012 Cascade Bancorp shares of common stock. As a result of the acquisition, the Company recorded $2.2 million of goodwill.

On March 4, 2016, the Bank completed the acquisition of 12 Oregon branch locations and three Washington branch locations from Bank of America, National Association (the “branch acquisition”). This transaction allows Cascade the opportunity to enhance and strengthen its footprint in Oregon, while providing entry into the Washington market. The Bank assumed approximately $469.9 million of branch deposits, paying a 2.00% premium on the average balance of deposits assumed, for a cash purchase price of $9.7 million. Assets and liabilities assumed in the branch acquisition were recorded at fair value. As a result of the branch acquisition, the Company recorded $4.0 million of goodwill.

The financial statements as of September 30, 2016 are inclusive of the effects of the combined results of operations following the PPFS acquisition and the branch acquisition (together, the "2016 acquisitions”). Due to the timing of the 2016 acquisitions, certain comparisons between periods are significantly affected by the transactions.

• Net income for the third quarter of 2016 was $4.1 million, or $0.06 per share, compared to $4.8 million, or $0.07 per share, for the linked quarter and $5.1 million, or $0.07 per share, for the third quarter of 2015. The third quarter earnings were negatively affected by non-recurring expense items of $2.6 million (pre-tax), or $0.02 per share (post tax), mainly related to the PPFS acquisition and certain branch consolidation costs.

• At September 30, 2016, gross loans were $2.1 billion compared to $1.9 billion at June 30, 2016. Third quarter organic loan growth¹ excluding PPFS, was $69.7 million, or 18.0% annualized.

• At September 30, 2016, total deposits were $2.7 billion, up $185.1 million, or 7.2%, from June 30, 2016. The increase was attributable to both the acquired PPFS deposits and organic growth.

• The cost of funds remained stable at 0.08% for the third quarter.

• Net interest income was $23.8 million for the third quarter, up $1.6 million, or 7.1%, from the linked quarter. Stronger interest revenue is due to higher average earning assets from both organic growth and the PPFS acquisition.

• Net interest margin (“NIM”) was 3.43% for the third quarter, up from the linked quarter’s 3.40% resulting from an improving earning asset mix.

• Net loan recoveries for the third quarter were $0.6 million. The allowance for loan losses (“ALLL”) at quarter end was 1.23% of gross loans. No provision or credit for loan losses was recorded in the third quarter. Credit quality metrics

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remained stable.

• At September 30, 2016, stockholders’ equity was $367.0 million, with book value per share of $4.81 and tangible book value per share² of $3.53.

• Return on average assets and return on average tangible assets³ in the third quarter were 0.53% and 0.54%, respectively, compared to 0.65% and 0.68% in the linked quarter, respectively. The change was mainly a result of non-recurring expense items in the third quarter.

• Return on average stockholders’ equity and return on average tangible stockholders’ equity⁴ in the current quarter was 4.53% and 6.20%, respectively, compared to 5.65% and 7.85% in the linked quarter, respectively.

Non-GAAP Financial Measures

This Form 10-Q contains certain financial measures that are not calculated in accordance with GAAP. The Company’s management uses these non-GAAP financial measures, specifically return on average tangible assets, return on average tangible stockholders equity, organic loan growth, tangible book value per common share, tangible common equity ratio to total assets and tangible stockholders’ equity, as important measures of the strength of the Company’s capital and its ability to generate earnings on its tangible capital invested by its shareholders. Management believes presentation of these non-GAAP financial measures provides useful supplemental information to our investors and others that contributes to a proper understanding of the financial results and capital levels of the Company. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. These non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.

¹Organic loan growth is a non-GAAP measure defined as total loan growth less acquired loans during the period. See below for a reconciliation of organic loan growth.

²Tangible book value per common share is a non-GAAP measure defined as total stockholders’ equity, less the sum of core deposit intangible (“CDI”) and goodwill, divided by total number of shares outstanding. See below for a reconciliation of tangible book value per common share.

³ Return on average tangible assets is a non-GAAP measure defined as net income divided by average total assets, less the sum of average CDI and goodwill. See below for a reconciliation of return on average tangible assets.

⁴Return on average tangible stockholders’ equity is a non-GAAP measure defined as net income divided by average total stockholders’ equity, less the sum of average CDI and goodwill. See below for a reconciliation of return on average tangible stockholders’ equity.

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Reconciliation of Non-GAAP Measures (unaudited)

Reconciliation of Non-GAAP Measures (unaudited):
Reconciliation of period end stockholders’ equity to period end tangible stockholders’ equity:	September 30, 2016			June 30, 2016			December 31, 2015			September 30, 2015
Total stockholders’ equity	$	366,996		$	345,260		$	336,774		$	331,589
Core deposit intangible	12,691			12,720			6,863			7,068
Goodwill	84,775			82,594			78,610			78,610
Tangible stockholders’ equity	$	269,530		$	249,946		$	251,301		$	245,911
Reconciliation of period end common stockholders’ equity ratio to period end tangible common stockholders’ equity ratio:	September 30, 2016			June 30, 2016			December 31, 2015			September 30, 2015
Total stockholders’ equity	$	366,996		$	345,260		$	336,774		$	331,589
Total assets	$	3,174,821		$	2,966,574		$	2,468,029		$	2,468,273
Common stockholders’ equity ratio	11.56		%	11.64		%	13.65		%	13.43		%
Tangible stockholders’ equity	$	269,530		$	249,946		$	251,301		$	245,911
Total assets	$	3,174,821		$	2,966,574		$	2,468,029		$	2,468,273
Tangible common stockholders’ equity ratio	8.49		%	8.43		%	10.18		%	9.96		%
Reconciliation of period end total stockholders’ equity to period end tangible book value per common share:	September 30, 2016			June 30, 2016			December 31, 2015			September 30, 2015
Total stockholders’ equity	$	366,996		$	345,260		$	336,774		$	331,589
Core deposit intangible	12,691			12,720			6,863			7,068
Goodwill	84,775			82,594			78,610			78,610
Tangible stockholders equity	$	269,530		$	249,946		$	251,301		$	245,911
Common shares outstanding	76,263,275			73,255,171			72,792,570			72,789,412
Tangible book value per common share	$	3.53		$	3.41		$	3.45		$	3.38

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	Three Months Ended												Nine Months Ended
Reconciliation of return on average tangible stockholders’ equity:	September 30, 2016			June 30, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Average stockholders’ equity	$	358,917		$	342,591		$	334,472		$	328,478		$	346,958		$	323,890
Average core deposit intangible	12,702			12,865			6,935			7,141			10,796			7,343
Average goodwill	84,035			82,594			78,610			78,610			81,769			79,052
Average tangible stockholders’ equity	$	262,180		$	247,132		$	248,927		$	242,727		$	254,393		$	237,495
Net income	4,089			4,824			5,567			5,099			10,853			15,012
Return on average tangible stockholders’ equity (annualized)	6.20		%	7.85		%	8.87		%	8.33		%	5.70		%	8.45		%
	Three Months Ended												Nine Months Ended
Reconciliation of return on average tangible assets:	September 30, 2016			June 30, 2016			December 31, 2015			September 30, 2015			September 30, 2016			September 30, 2015
Average total assets	$	3,093,503		$	2,961,853		$	2,525,708		$	2,471,910		$	2,898,688		$	2,410,413
Average core deposit intangible	12,702			12,865			6,935			7,141			10,796			7,343
Average goodwill	84,035			82,594			78,610			78,610			81,769			79,052
Average tangible assets	$	2,996,766		$	2,866,394		$	2,440,163		$	2,386,159		$	2,806,123		$	2,324,018
Net income	4,089			4,824			5,567			5,099			10,853			15,012
Return on average tangible assets (annualized)	0.54		%	0.68		%	0.91		%	0.85		%	0.52		%	0.86		%

Reconciliation of year-over-year total loan growth to organic loan growth (from September 30, 2015):	Year over year September 30, 2016
Total loan growth	$	413,667
Acquired loan growth	85,281
PPFS loans	104,253
Organic loan growth, excluding PPFS	$	224,133
Reconciliation of year-to-date total loan growth to organic loan growth (from December 31, 2015):	YTD September 30, 2016
Total loan growth	$	373,018
Acquired loan growth	74,281
PPFS loans	104,253
Organic loan growth, excluding PPFS	$	194,484
Reconciliation of quarterly total loan growth to organic loan growth (from June 30, 2016):	QTD September 30, 2016
Total loan growth	$	158,689
Acquired loan growth	(15,306		)
PPFS loans	104,253
Organic loan growth, excluding PPFS	$	69,742

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RESULTS OF OPERATIONS –Three and Nine Months Ended September 30, 2016 and 2015

Income Statement

Net Income

Net income for the third quarter of 2016 was $4.1 million, or $0.06 per share, compared to $4.8 million, or $0.07 per share, for the linked quarter and $5.1 million, or $0.07 per share, for the third quarter of 2015 (the "year ago period”). Net income for the nine months ended September 30, 2016 was $10.9 million, or $0.15 per share, compared to $15.0 million, or $0.21 per share for the nine months ended September 30, 2015.

The third quarter included non-recurring expense items of $2.6 million (pre-tax), or approximately $0.02 per share (post tax), mainly related to the acquisition of PPFS and certain branch consolidation costs. Similarly, the nine months ended September 30, 2016 included $7.2 million of generally non-recurring costs mainly related to the branch acquisition, PPFS acquisition and certain branch consolidation costs.

Net Interest Income

Net interest income was $23.8 million for the third quarter of 2016, as compared to $20.4 million in the third quarter of 2015. Net interest income was $68.2 million and $60.7 million for the nine months ended September 30, 2016 and 2015, respectively.

Total interest income increased $3.5 million from $20.8 million in the third quarter of 2015 to $24.4 million in the third quarter of 2016. Total interest income was $69.8 million and $60.2 million for the nine months ended September 30, 2016 and 2015, respectively. Stronger interest income is due to higher average earning assets from both organic loan growth and the PPFS acquisition. Interest income from investments is higher compared to prior periods due to deployment of cash received from the Bank of America branch acquisition into securities.

Total interest expense for the third quarter of 2016 and the year ago period was $0.6 million and $0.4 million, respectively. The cost of funds for the third quarter, the linked quarter and the year ago period was 0.08%. The year ago period did not include the $469.9 million in deposits acquired from Bank of America in March of 2016 or the $101.5 million in deposits acquired from the PPFS acquisition in August of 2016.

The NIM for the third quarter of 2016 was 3.43%, compared to NIM of 3.72% in the third quarter of 2015. The NIM for the nine months ended September 30, 2016 was 3.53%, compared to NIM of 3.72% for the nine months ended September 30, 2015. The NIM declined from prior periods because of the deployment of acquired funds into lower yielding securities and wholesale loans which will be replaced with originated loans over time. Sustained low market interest rates have also contributed to NIM compression.

Components of Net Interest Margin

The following tables set forth the components of the Company’s NIM for the three and nine months ended September 30, 2016 and 2015. The tables present average balance sheet information, interest income and yields on average interest-earning assets, interest expense and rates paid on average interest-bearing liabilities, net interest income, net interest spread and NIM for the Company (dollars in thousands):

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	Three Months Ended September 30,
	2016							2015
	Average Balance			Interest Income/ Expense		Average Yield or Rates		Average Balance			Interest Income/ Expense		Average Yield or Rates
Assets
Investment securities	$	623,595		$	3,514	2.24	%	$	450,655		$	2,995	2.64	%
Interest bearing balances due from other banks	146,237			217		0.59	%	97,099			58		0.24	%
Federal funds sold	338			—		—	%	273			—		—	%
Federal Home Loan Bank stock	3,223			—		—	%	3,018			—		—	%
Loans (1)(2)(3)	1,981,835			20,622		4.14	%	1,626,066			17,788		4.34	%
Total earning assets/interest income	2,755,228			24,353		3.52	%	2,177,111			20,841		3.80	%
Reserve for loan losses	(24,903		)					(25,113		)
Cash and due from banks	55,802							45,781
Premises and equipment, net	48,286							42,362
Bank-owned life insurance	56,036							54,041
Deferred tax asset	46,947							55,389
Goodwill	84,035							78,610
Core deposit intangibles	12,702							7,141
Accrued interest and other assets	59,370							36,588
Total assets	$	3,093,503						$	2,471,910
Liabilities and Stockholders’ Equity
Interest bearing demand deposits	$	1,361,053		494		0.14	%	$	1,040,493		337		0.13	%
Savings deposits	184,537			21		0.05	%	134,033			10		0.03	%
Time deposits	229,486			54		0.09	%	193,895			83		0.17	%
Other borrowings	1			—		—	%	—			—		—	%
Total interest bearing liabilities/interest expense	1,775,077			569		0.13	%	1,368,421			430		0.12	%
Demand deposits	898,822							728,104
Other liabilities	60,687							46,907
Total liabilities	2,734,586							2,143,432
Stockholders’ equity	358,917							328,478
Total liabilities and stockholders’ equity	$	3,093,503						$	2,471,910
Net interest income				$	23,784						$	20,411
Net interest spread						3.39	%						3.68	%
Net interest income to earning assets						3.43	%						3.72	%

(1) Average non-performing loans included in the computation of average loans for the three months ended September 30, 2016 and 2015 was approximately $4.1 million.

(2) Loan related fees, including prepayment penalties, recognized during the period and included in the yield calculation totaled approximately $0.6 million and $1.0 million in three months ended September 30, 2016 and 2015, respectively.

(3) Includes loans held for sale.

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	Nine Months Ended September 30,
(dollars in thousands)	2016							2015
	Average Balance			Interest Income/ Expense		Average Yield or Rates		Average Balance			Interest Income/ Expense		Average Yield or Rates
Assets
Investment securities	$	572,394		$	11,561	2.70	%	$	459,306		$	8,783	2.56	%
Interest bearing balances due from other banks	158,732			646		0.54	%	62,106			118		0.25	%
Federal funds sold	295			—		—	%	273			—		—	%
Federal Home Loan Bank stock	3,417			—		—	%	15,453			—		—	%
Loans (1)(2)(3)	1,843,845			57,579		4.17	%	1,573,712			51,269		4.36	%
Total earning assets/interest income	2,578,683			69,786		3.61	%	2,110,850			60,170		3.81	%
Reserve for loan losses	(25,417		)					(24,038		)
Cash and due from banks	53,174							43,004
Premises and equipment, net	45,226							43,024
Bank-owned life insurance	55,138							53,795
Deferred tax asset	48,391							60,962
Goodwill	81,769							79,052
Core deposit intangibles	10,796							7,343
Accrued interest and other assets	50,928							36,421
Total assets	$	2,898,688						$	2,410,413
Liabilities and Stockholders' Equity
Interest bearing demand deposits	$	1,269,243		1,365		0.14	%	$	1,012,221		965		0.13	%
Savings deposits	167,557			45		0.04	%	132,704			30		0.03	%
Time deposits	209,360			191		0.12	%	208,722			442		0.28	%
Other borrowings	7,588			26		0.46	%	2,253			6		0.36	%
Total interest bearing liabilities/interest expense	1,653,748			1,627		0.13	%	1,355,900			1,443		0.14	%
Demand deposits	842,452							684,859
Other liabilities	55,530							45,764
Total liabilities	2,551,730							2,086,523
Stockholders' equity	346,958							323,890
Total liabilities and stockholders’ equity	$	2,898,688						$	2,410,413
Net interest income				$	68,159						$	58,727
Net interest spread						3.48	%						3.67	%
Net interest income to earning assets						3.53	%						3.72	%

(1) Average non-performing loans included in the computation of average loans for the nine months ended September 30, 2016 and 2015 was approximately $3.9 million and $5.8 million, respectively.

(2) Loan related fees, including prepayment penalties, recognized during the period and included in the yield calculation totaled approximately $1.5 million and $2.2 million in the nine months ended September 30, 2016 and 2015, respectively.

(3) Includes loans held for sale.

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Analysis of Changes in Interest Income and Expense

The following table shows the dollar amount of increase (decrease) in the Company’s consolidated interest income and expense for the three and nine months ended September 30, 2016, and attributes such variance to “volume” or “rate” changes (dollars in thousands). The changes in net interest income due to changes in both average volume and average interest rate have been allocated to the average volume change or the average interest rate change in proportion to the absolute amounts of the change in each.

	Three Months Ended September 30,
	2016 over 2015
	Total Increase			Amount of Change Attributed to
	(Decrease)			Volume		Rate
Interest income:
Interest and fees on loans	$	2,834		$	3,858	$	(1,024	)
Interest on investment securities	519			1,142		(623		)
Other investment income	159			29		130
Total interest income	3,512			5,029		(1,517		)
Interest expense:
Interest on deposits:
Interest bearing demand	157			104		53
Savings	11			4		7
Time deposits	(29		)	15		(44		)
Other borrowings	—			—		—
Total interest expense	139			123		16
Net interest income	$	3,373		$	4,906	$	(1,533	)

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	Nine Months Ended September 30,
	2016 over 2015
	Total Increase			Amount of Change Attributed to
	(Decrease)			Volume		Rate
Interest income:
Interest and fees on loans	$	6,310		$	8,832	$	(2,522	)
Interest on investment securities	2,778			2,177		601
Other investment income	528			184		344
Total interest income	9,616			11,193		(1,577		)
Interest expense:
Interest on deposits:
Interest bearing demand	400			246		154
Savings	15			8		7
Time deposits	(251		)	1		(252		)
Other borrowings	20			14		6
Total interest expense	184			269		(85		)
Net interest income	$	9,432		$	10,924	$	(1,492	)

Loan Loss Provision and Reserve for Loan Losses

There was no provision for loan loss in the third quarter of 2016, linked quarter or third quarter of 2015.

The Bank maintains pooled and impaired loan reserves with additional consideration of qualitative factors and unallocated reserves in reaching its determination of the total reserve for loan losses. The level of reserves is subject to review by the Bank’s regulatory authorities who may require adjustments to the reserve based on their evaluation and opinion of economic and industry factors as well as specific loans in the portfolio. For further discussion, see “Critical Accounting Policies and Estimates” in this Form 10-Q and “Loan Portfolio and Credit Quality” in Item 7 of our 2015 Annual Report. There can be no assurance that the reserve for credit losses will be sufficient to cover actual loan-related losses.

As of September 30, 2016, the reserve for loan losses was $25.2 million, or 1.23% of outstanding loans, compared to $24.4 million, or 1.45% of outstanding loans, at December 31, 2015. The Company’s reserve for loan losses ratio has decreased from December 31, 2015, however management considers the level of the reserve to be adequate based on assessment of various factors affecting the loan portfolio, including loan portfolio credit quality. Activity in the reserve during the period includes $5.3 million gross recoveries on loans previously charged off, largely offset by a write-down of a loan in the Bank’s mining and energy SNC portfolio.  Aggregate portfolio exposure to energy/mining sector is less than 1% of total loans. The unallocated portion of the reserve is subject to refinement as we continue to enhance our qualitative factors and assess uncertainties regarding our entry into new loan markets, new geographies and general uncertainty related to growth and economic conditions. In particular, management is evaluating its economic conditions qualitative factor as it relates to the duration of economic cycles.

The reserve for unfunded lending commitments was $0.4 million at September 30, 2016, which remained unchanged from December 31, 2015.

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Non-Interest Income

Non-interest income was as follows for the periods presented below (dollars in thousands):

	Three Months Ended    September 30, 2016		Three Months Ended    September 30, 2015		% Change		Nine Months Ended   September 30, 2016		Nine Months Ended   September 30, 2015		% Change
Service charges on deposit accounts	$	1,786	$	1,326	34.7	%	$	4,887	$	3,836	27.4	%
Card issuer and merchant services fees, net	2,643		1,837		43.9	%	7,178		5,336		34.5	%
Earnings on BOLI	434		252		72.2	%	941		736		27.9	%
Mortgage banking income, net	857		624		37.3	%	2,251		2,089		7.8	%
Swap fee income	713		595		19.8	%	1,845		1,895		(2.6	)%
SBA gain on sales and fee income	428		554		(22.7	)%	988		1,060		(6.8	)%
Gain on sales of investments	—		503		(100.0	)%	—		503		(100.0	)%
Other income	1,079		693		55.7	%	3,077		3,746		(17.9	)%
Total non-interest income	$	7,940	$	6,384	24.4	%	$	21,167	$	19,201	10.2	%

Non-interest income for the three and nine months ended September 30, 2016 was $7.9 million and $21.2 million, respectively, up from $6.4 million and $19.2 million during the three and nine months ended September 30, 2015. These increases are primarily a result of higher service fees and card-related revenue arising from increased volumes of accounts and transactions arising from the 2016 acquisitions.

For the three and nine months ended September 30, 2016, service charges on deposit accounts and card issuer and merchant service fees were up over the three and nine months ended September 30, 2015 mainly due to higher transaction volumes including those from acquired branch customers following the acquisitions.

Earnings on BOLI for the three and nine months ended September 30, 2016 increased compared to the three and nine months ended September 30, 2015 due to the receipt of a death benefit in the third quarter of 2016. The Company has no plans to increase BOLI at this time.

Net mortgage banking income increased in the three and nine months ended September 30, 2016 compared to the three and nine months ended September 30, 2015, mainly due to higher origination volumes and changes in the interest rate environment.

The Bank began to offer its customer interest rate swaps and SBA services in 2013 in order to increase its services to customers and diversify its revenue sources. Changes in customer swap fee income and SBA revenue for the third quarter and year to date periods of 2016 generally relate to the timing of transaction settlement for these services compared to the respective year ago periods.

Gain on sales of investments decreased for the three and nine months ended September 30, 2016 compared to the three and nine months ended September 30, 2015 due to a gain on sale of certain short duration MBS investment securities in the available for sale portfolio in the year ago periods.

Other income for the three months ended September 30, 2016 increased $0.4 million compared to the three months ended September 30, 2015, due to increased volumes of accounts and transactions arising from the 2016 acquisitions. Other income for the nine months ended September 30, 2016 decreased compared to nine months ended September 30, 2015 as the year ago period included a contractual arrangement for future revenue-sharing of merchant services totaling $1.1 million.

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Non-Interest Expense

Non-interest expense was as follows for the periods presented below (dollars in thousands):

	Three Months Ended    September 30, 2016		Three Months Ended    September 30, 2015		% Change		Nine Months Ended   September 30, 2016		Nine Months Ended   September 30, 2015		% Change
Salaries and employee benefits	$	13,217	$	11,315	16.8	%	$	39,335	$	33,033	19.1	%
Occupancy	2,546		1,123		126.7	%	6,873		3,906		76.0	%
Information technology	1,558		745		109.1	%	4,137		2,729		51.6	%
Equipment	864		390		121.5	%	1,622		1,142		42.0	%
Communications	615		560		9.8	%	1,908		1,585		20.4	%
FDIC insurance	514		342		50.3	%	1,346		1,046		28.7	%
OREO	43		122		(64.8	)%	136		11		1,136.4	%
Professional services	1,682		1,548		8.7	%	4,340		3,931		10.4	%
Card issuer	1,003		693		44.7	%	2,956		2,199		34.4	%
Insurance	186		183		1.6	%	519		583		(11.0	)%
Other expenses	2,992		2,049		46.0	%	8,901		6,116		45.5	%
Total non-interest expense	$	25,220	$	19,070	32.2	%	$	72,073	$	56,281	28.1	%

Non-interest expense for the third quarter of 2016 was $25.2 million compared to $19.1 million for the third quarter of 2015. Non-interest expense for the nine months ended September 30, 2016 was $72.1 million compared to $56.3 million for the nine months ended September 30, 2015. The year-over-year increase in non-interest expense was largely a result of $7.2 million in generally non-recurring costs mainly related to the branch acquisition, PPFS acquisition and certain branch consolidations, as well as the increase in run-rate expenses associated with the additional branches obtained in the 2016 acquisitions. Incremental run rate expenses of the 2016 acquisitions primarily impact salaries and benefits, occupancy, information technology, equipment, card issuer and other expenses as described below.

Total salaries and benefits increased $1.9 million and $6.3 million for the three and nine months ended September 30, 2016, respectively, compared to the same periods in 2015, primarily related to ongoing costs of $1.2 million and $2.4 million associated with staffing our expanded branch network following the acquisitions for the respective periods, as well as non-recurring costs of acquired branch employees, including severance, healthcare and other benefit accruals.

Information technology for the three and nine months ended September 30, 2016 increased from the same periods in 2015, due primarily to one-time system conversion costs and ongoing service associated with the 2016 acquisitions.

Occupancy and communications expenses for the three and nine months ended September 30, 2016 increased an aggregate of $1.5 million and $3.3 million, respectively, compared to the three and nine months ended September 30, 2015, primarily related to generally non-recurring costs associated with the branch acquisition, PPFS acquisition and certain branch consolidations. In addition, the year ago period included credits to occupancy on the disposition of decommissioned branches. Equipment expenses showed an increase from the year ago periods due to costs associated with the 2016 acquisitions.

OREO expense fluctuations for the three and nine months ended September 30, 2016 compared to the respective periods in 2015 related to the timing of sales of OREO properties.

Professional services were relatively stable for the three months ended September 30, 2016 compared to the same period in 2015. Professional services increased for the nine months ended September 30, 2016 due mainly to the branch acquisition and PPFS acquisition-related costs.

Card issuer expenses increased for the three and nine month period ended September 30, 2016 related to increased volume and related charges following the 2016 acquisitions.

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Insurance expenses remained consistent for the three months ended September 30, 2016 compared to the same period in 2015 and decreased 11.0% in the nine months ended September 30, 2016 compared to the same period in 2015, largely as a result of lower risk rate on renewal of insurance.

Other expenses increased for the three and nine months ended September 30, 2016 as compared to the same periods in 2015, mainly related to costs associated with the 2016 acquisitions.

Income Taxes

The Company recorded an income tax provision of $2.4 million during the three months ended September 30, 2016, as compared to $2.6 million for the three months ended September 30, 2015. The income tax provision for the nine months ended September 30, 2016 was $6.4 million compared to $8.6 million for the nine months ended September 30, 2015.

As of September 30, 2016, the DTA was $46.2 million. This is compared with a DTA as of December 31, 2015 of $50.7 million. Our estimated effective income tax rate differs from the statutory income tax rate primarily due to the exclusion of certain BOLI and municipal loan and bond interest income from taxable income. 

In assessing the Company’s ability to utilize its DTA, management considers whether it is more likely than not that some portion or all of the DTA will not be realized. The ultimate realization of DTA is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables.

Financial Condition

Total Assets and Liabilities

Total assets at September 30, 2016 increased to $3.2 billion, compared to $2.5 billion at December 31, 2015, with higher cash and cash equivalents, investments, and loans outstanding.

Cash and cash equivalents at September 30, 2016 were $152.4 million compared to $77.8 million at December 31, 2015 due to deposits assumed in the recent 2016 acquisitions.

Investment securities classified as available-for-sale and held-to-maturity were $664.6 million at September 30, 2016, compared to $449.7 million at December 31, 2015. The increase is due to the deployment of excess cash assumed in the recent 2016 acquisitions into investment securities.

Total loans at September 30, 2016 were $2.1 billion, compared to $1.7 billion at December 31, 2015. Loan growth was distributed among commercial real estate, construction, consumer residential and commercial and industrial loans. Consumer residential included both retained and acquired mortgages. 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 SNC portfolio.

FHLB stock remained steady with $3.0 million at December 31, 2015 and $3.3 million at September 30, 2016.

At September 30, 2016, goodwill increased to $84.8 million, compared to $78.6 million at December 31, 2015 due primarily to the premium paid for $469.9 million in deposits assumed with the branch acquisition and the premium paid in the PPFS acquisition.

Other assets increased to $58.5 million at September 30, 2016 from $35.9 million at December 31, 2015 due primarily to an increase in customer swap collateral and mark to market adjustments for swap assets.

Total deposits increased to $2.7 billion at September 30, 2016 from $2.1 billion at December 31, 2015 due primarily to deposits assumed in the recent 2016 acquisitions. Increases from December 31, 2015 were visible across all deposit types, with significant impact in non-interest bearing accounts (up $218.6 million, or 30.0%) and interest bearing demand (up $327.8 million, or 31.4%). The overall cost of funds was 0.08% for the quarters ended September 30, 2016, December 31, 2015, and September 30, 2015, respectively.

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From time to time the Company makes commitments to acquire banking properties or to make equipment or technology related investments of capital. At September 30, 2016, the Company had no material capital expenditure commitments apart from those incurred in the ordinary course of business.

Stockholders’ Equity and Capital Resources

Total stockholders’ equity at September 30, 2016 was $367.0 million, as compared to $336.8 million at December 31, 2015. The increase in total stockholders’ equity was due to the stock issuance in connection with the acquisition of PPFS and interim period net income. At September 30, 2016, the total common equity to total assets ratio was 11.56% and the Company’s basic book value per share was $4.81 as compared to the total common equity to total assets ratio of 13.65% and basic book value per share of $4.63 at December 31, 2015.

At September 30, 2016, the Bancorp’s and Bank’s capital ratios exceeded the requirements to be designated as “well-capitalized” under the Basel III regulatory capital framework. Additional information regarding capital requirements can be found in Note 13 of the notes to the condensed consolidated financial statements included in this Form 10-Q.

	Actual				Regulatory minimum to be “well capitalized”
	Capital Amount		Ratio		Capital Amount		Ratio
September 30, 2016
Tier 1 leverage (to average assets)
Bancorp	$	249,431	8.4	%	$	148,964	5.0	%
Bank	245,681		8.3	%	148,828		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	249,431		10.4		156,338		6.5
Bank	245,681		10.2		156,349		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	249,431		10.4		192,416		8.0
Bank	245,681		10.2		192,430		8.0
Total capital (to risk-weighted assets)
Bancorp	275,112		11.4		240,520		10.0
Bank	271,362		11.3		240,537		10.0
December 31, 2015
Tier 1 leverage (to average assets)
Bancorp	$	227,542	9.4	%	$	121,022	5.0	%
Bank	223,533		9.3	%	120,827		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	227,542		11.5		128,292		6.5
Bank	223,533		11.4		128,069		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	227,542		11.5		157,898		8.0
Bank	223,533		11.4		157,624		8.0
Total capital (to risk-weighted assets)
Bancorp	252,401		12.8		197,373		10.0
Bank	248,346		12.6		197,030		10.0

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Asset Quality

For the quarter ended September 30, 2016, net recoveries were approximately $0.6 million and the reserve for loan losses was $25.2 million, compared to $24.4 million as of December 31, 2015. The ratio of loan loss reserve to total loans was 1.23% at September 30, 2016 compared to 1.45% at December 31, 2015. The lower ratio is related to an increase in total loan balances and continued positive credit quality metrics.

Non-performing assets as a percentage of total assets was 0.46% at September 30, 2016, as compared to 0.34% at December 31, 2015 and 0.36% at September 30, 2015. The increase relates to risk-rating downgrades in the mining/energy sector of the loan portfolio 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.

Year-to-date net recoveries include a first quarter 2016 $3.3 million recovery on a previously charged off loan that was partially offset by a $2.7 million charge off related to downgrades in the SNC portfolio with exposure to the oil and mining sector at September 30, 2016. The Company’s aggregate mining and energy exposure remained less than 1.0% of total loans, and management believes it has adequately reserved for such risks.

At September 30, 2016, $22.3 million of the $298.8 million in acquired loans were covered under loss sharing agreements with the FDIC. These loss sharing agreements will expire five years after the date of the FDIC agreements for non-single family covered assets and 10 years after the acquisitions date for single-family covered assets. The Company has determined it will report on a cash basis any potential future benefits and/or costs incurred with respect to the remaining loss share receivables (or payables) under these agreements. The remaining benefit and/or cost of the FDIC loss sharing agreements are not expected to be material to the Company’s financial condition. Estimated future losses on acquired covered loans are included in the fair value purchase accounting mark.

Off-Balance Sheet Arrangements

The following table summarizes the Bank’s off-balance sheet commitments at September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016		December 31, 2015
Commitments to extend credit	$	516,094	$	479,353
Commitments under credit card lines of credit	76,904		65,988
Standby letters of credit	5,613		5,090
Total off-balance sheet financial instruments	$	598,611	$	550,431

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the customer contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The Bank applies established credit standards and underwriting practices in evaluating the creditworthiness of such obligors and related collateral requirements, if any. Collateral held for commitments varies but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. The Bank typically does not obtain collateral related to credit card commitments.

Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Bank would be required to fund the commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Bank would be entitled to seek recovery from the customer. The Bank’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those involved in extending loans to customers. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers.

The increase in commitments to extend credit from the balance at December 31, 2015 to the balance at September 30, 2016 was primarily related to an increase in commercial real estate and credit card lending commitments.

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Other than those commitments discussed above, there are no other obligations or liabilities of the Company arising from its off-balance sheet arrangements that are or are reasonably likely to become material.  In addition, the Company knows of no event, demand, commitment, trend or uncertainty that will result in or is reasonably likely to result in the termination or material reduction in availability of the off-balance sheet arrangements. The Company had no material off-balance sheet derivative financial instruments as of September 30, 2016 and December 31, 2015.

Liquidity and Sources of Funds

The objective of the Bank’s liquidity management is to maintain sufficient cash flows to meet obligations for depositor withdrawals, to fund the borrowing needs of loan customers, and to fund ongoing operations. At September 30, 2016, liquid assets of the Bank were mainly interest bearing balances held at the Federal Reserve Bank of San Francisco (“FRB”) totaling $80.0 million compared to $22.3 million at December 31, 2015. The increase was primarily the result of cash assumed in the recent 2016 acquisitions.

Core relationship deposits are the Bank’s primary source of funds. As such, the Bank focuses on deposit relationships with local business and consumer clients who maintain multiple accounts and services at the Bank. The Company views such deposits as the foundation of its long-term liquidity because it believes such core deposits are more stable and less sensitive to changing interest rates and other economic factors compared to large time deposits or wholesale purchased funds. The Bank’s customer relationship strategy has resulted in a relatively higher percentage of its deposits being held in checking and money market accounts, and a lesser percentage in time deposits.

 In March 2016 and August 2016, the Company increased its core deposits with the purchase of branches and customer deposits from Bank of America and the acquisition of PPFS. Management believes such deposits have enhanced its liquidity profile.

The Bank augments core deposits with wholesale funds from time to time. The Bank may accept local relationship-based reciprocal Certificate of Deposit Account Registry Service (“CDARS”) and Demand Deposit Marketplace (“DDM”) deposits. Regulators classify such as brokered deposits. At September 30, 2016 and December 31, 2015, the Company had $1.0 million and $10.0 million in reciprocal CDARS, respectively, and $80.3 million and $76.0 million in reciprocal DDM deposits, respectively.

The Bank accepts public fund deposits in Oregon, Idaho and Washington and follows rules imposed by state authorities. Current rules imposed by the Oregon and Washington State Treasuries require that the Bank collateralize no less than 50% of the uninsured public funds of Oregon and Washington entities held by the Bank, respectively. At September 30, 2016, the Bank was in compliance with these requirements. Currently, there are no collateral requirements set on Idaho public deposits.

The Bank also utilizes borrowings and lines of credit as sources of funds. At September 30, 2016, the Federal Home Loan Bank of Des Moines (“FHLB”) had extended the Bank a secured line of credit of $1.0 billion (35.00% of total assets) accessible for short or long-term borrowings given sufficient qualifying collateral. As of September 30, 2016, the Bank had qualifying collateral pledged for FHLB borrowings totaling $611.3 million, of which the Bank had no indebtedness. At September 30, 2016, the Bank also had undrawn borrowing capacity at FRB of $17.8 million supported by specific qualifying collateral. Borrowing capacity from FHLB or FRB may fluctuate based upon the acceptability and risk rating of loan collateral, and counterparties could adjust discount rates applied to such collateral at their discretion. Also, FRB or FHLB could restrict or limit our access to secured borrowings. Correspondent banks have extended $90.0 million in unsecured or collateralized short-term lines of credit for the purchase of federal funds. At September 30, 2016, the Company had no outstanding borrowings under these federal fund borrowing agreements.

Liquidity may be affected by the Bank’s routine commitments to extend credit. At September 30, 2016, the Bank had $598.6 million in total outstanding commitments to extend credit, compared to $550.4 million at year-end 2015. At this time, management believes that the Bank’s available resources will be sufficient to fund its commitments in the normal course of business.

The investment portfolio also provides a secondary source of funds as investments may be pledged for borrowings or sold for cash. This liquidity is limited, however, by counterparties’ willingness to accept securities as collateral and the market value of securities at the time of sale could result in a loss to the Bank. As of September 30, 2016, the book value of unpledged investments totaled $465.1 million compared to $331.7 million at December 31, 2015.

Bancorp is a single bank holding company and its primary ongoing source of liquidity is dividends received from the Bank. Oregon banking laws impose certain limitations on the payment of dividends by Oregon state chartered banks.  The amount of the dividend may not be greater than the Bank’s unreserved retained earnings, deducting from that, to the extent not already charged against earnings or reflected in a reserve, the following: (1) all bad debts, which are debts on which interest is past due and unpaid for at least six months, unless the debt is fully secured and in the process of collection; (2) all other assets charged off as required by

60

the Director of the Department of Consumer and Business Services or a state or federal examiner; and (3) all accrued expenses, interest and taxes of the institution.

Inflation

The effect of changing prices on financial institutions is typically different than on non-banking companies since virtually all of a bank’s assets and liabilities are monetary in nature. In particular, interest rates are significantly affected by inflation, but neither the timing nor magnitude of the changes are directly related to price level indices; therefore, the Company can best counter inflation over the long term by managing net interest income and controlling net increases in noninterest income and expenses.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our assessment of market risk as of September 30, 2016 indicates there are no material changes in the quantitative and qualitative disclosures from those in our 2015 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedure

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this Form 10-Q. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. This evaluation was carried out under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and the Company’s Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this Form 10-Q.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business.  While the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s condensed consolidated financial position, results of operations or cash flows.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors previously disclosed in Part I – Item 1A Risk Factors of our 2015 Annual Report. These factors could materially and adversely affect our business, financial condition, liquidity, results of operations and capital position, and could cause our actual results to differ materially from our historical results or the results contemplated by the forward-looking statements contained in this Form 10-Q. There have been no material changes to Cascade’s risk factors described in our 2015 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)-(b) Not applicable.

(c) During the quarter ended September 30, 2016, the Company did not repurchase any shares.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

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Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

(a) Not applicable.

(b) There have been no material changes to the procedures by which shareholders may nominate directors to the Company’s board of directors.

ITEM 6. EXHIBITS

Exhibit Number	Description
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-4(a)
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-4(a)
32	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

62

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			CASCADE BANCORP (Registrant)
Date	November 4, 2016	By	/s/ Terry E. Zink
			Terry E. Zink, President & Chief Executive Officer (Principal Executive Officer)
Date	November 4, 2016	By	/s/ Gregory D. Newton
			Gregory D. Newton, EVP & Chief Financial Officer (Principal Financial and Chief Accounting Officer)

63

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Terry E. Zink, President & Chief Executive Officer, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Cascade Bancorp;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant’s internal control over financial reporting. 

Dated	November 4, 2016	/s/ Terry E. Zink
		Terry E. Zink
		President & Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Gregory D. Newton, EVP & Chief Financial Officer, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Cascade Bancorp;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant’s internal control over financial reporting. 

Dated:	November 4, 2016	/s/ Gregory D. Newton
		Gregory D. Newton
		EVP & Chief Financial Officer

EX-32

Exhibit 32

Certification Required by 18 U.S.C. Section 1350,

as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

This certification is given by the undersigned Chief Executive Officer and Chief Financial Officer of Cascade Bancorp (the “registrant”) pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Each of the undersigned hereby certifies, with respect to the registrant’s quarterly report on Form 10-Q for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the registrant.

/s/ Terry E. Zink

Terry E. Zink

President & Chief Executive Officer

/s/ Gregory D. Newton

Gregory D. Newton

EVP & Chief Financial Officer

Dated: November 4, 2016

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 02, 2016
Document Documentand Entity Information [Abstract]
Entity Registrant Name	CASCADE BANCORP
Entity Central Index Key	0000865911
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	cacb
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		76,262,497

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Cash and cash equivalents:
Cash and due from banks	$ 54,890	$ 46,354
Interest bearing deposits	97,197	31,178
Federal funds sold	273	273
Total cash and cash equivalents	152,360	77,805
Investment securities available-for-sale	523,275	310,262
Investment securities held-to-maturity, estimated fair value of $148,213 at September 30, 2016; $142,260 at December 31, 2015	141,326	139,424
Federal Home Loan Bank (FHLB) stock	3,270	3,000
Loans held for sale	9,478	3,621
Loans, net	2,034,353	1,662,095
Premises and equipment, net	50,221	42,031
Bank-owned life insurance (BOLI)	56,708	54,450
Other real estate owned (OREO), net	1,677	3,274
Deferred tax asset (DTA), net	46,211	50,673
Core deposit intangible (CDI)	12,691	6,863
Goodwill	84,775	78,610
Other assets	58,476	35,921
Total assets	3,174,821	2,468,029
Deposits:
Demand	946,318	727,730
Interest bearing demand	1,371,955	1,044,134
Savings	192,780	135,527
Time	234,028	175,697
Total deposits	2,745,081	2,083,088
Other liabilities	62,744	48,167
Total liabilities	2,807,825	2,131,255
Stockholders’ equity:
Preferred stock, no par value; 5,000,000 shares authorized; none issued or outstanding	0	0
Common stock, no par value; 100,000,000 shares authorized; 76,263,275 issued and outstanding as of September 30, 2016; 72,792,570 issued and outstanding as of December 31, 2015	470,938	452,925
Accumulated deficit	(106,918)	(117,772)
Accumulated other comprehensive income	2,976	1,621
Total stockholders’ equity	366,996	336,774
Total liabilities and stockholders’ equity	$ 3,174,821	$ 2,468,029

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Investment Securities held-to-maturity, estimated fair value (in dollars)	$ 148,213	$ 142,260
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	76,263,275	72,792,570
Common stock, shares outstanding (in shares)	76,263,275	72,792,570

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest income:
Interest and fees on loans	$ 20,622	$ 17,788	$ 57,579	$ 51,269
Interest on investments	3,514	2,995	11,561	8,783
Other interest income	217	58	646	118
Total interest income	24,353	20,841	69,786	60,170
Deposits:
Interest bearing demand	494	337	1,365	965
Savings	21	10	45	30
Time	54	83	191	442
Other borrowings	0	0	26	6
Total interest expense	569	430	1,627	1,443
Net interest income	23,784	20,411	68,159	58,727
Loan loss recovery	0	0	0	(2,000)
Net interest income after loan loss recovery	23,784	20,411	68,159	60,727
Non-interest income:
Service charges on deposit accounts	1,786	1,326	4,887	3,836
Card issuer and merchant services fees, net	2,643	1,837	7,178	5,336
Earnings on BOLI	434	252	941	736
Mortgage banking income, net	857	624	2,251	2,089
Swap fee income	713	595	1,845	1,895
SBA gain on sales and fee income	428	554	988	1,060
Gain on sales of investments	0	503	0	503
Other income	1,079	693	3,077	3,746
Total non-interest income	7,940	6,384	21,167	19,201
Non-interest expense:
Salaries and employee benefits	13,217	11,315	39,335	33,033
Occupancy	2,546	1,123	6,873	3,906
Information technology	1,558	745	4,137	2,729
Equipment	864	390	1,622	1,142
Communications	615	560	1,908	1,585
Federal Deposit Insurance Corporation (FDIC) insurance	514	342	1,346	1,046
OREO (income) expense	43	122	136	11
Professional services	1,682	1,548	4,340	3,931
Card issuer	1,003	693	2,956	2,199
Insurance	186	183	519	583
Other expenses	2,992	2,049	8,901	6,116
Total non-interest expense	25,220	19,070	72,073	56,281
Income before income taxes	6,504	7,725	17,253	23,647
Income tax provision	(2,415)	(2,626)	(6,400)	(8,635)
Net income	$ 4,089	$ 5,099	$ 10,853	$ 15,012
Basic and diluted income per share:
Net income per common share (in dollars per share)	$ 0.06	$ 0.07	$ 0.15	$ 0.21
Net income per common share (diluted) (in dollars per share)	$ 0.06	$ 0.07	$ 0.15	$ 0.21

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 4,089	$ 5,099	$ 10,853	$ 15,012
Other comprehensive income:
Change in unrealized gains on investment securities available-for-sale	1,093	427	2,185	(300)
Tax effect on securities	(415)	(162)	(830)	43
Total other comprehensive income (loss)	678	265	1,355	(257)
Comprehensive income	$ 4,767	$ 5,364	$ 12,208	$ 14,755

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net cash provided by operating activities	$ 2,557	$ 33,341
Investing activities:
Purchases of investment securities available-for-sale	(314,655)	(65,584)
Purchases of investment securities held to maturity	(6,464)	0
Proceeds from maturities, calls, sales and prepayments of investment securities available-for-sale	104,137	88,325
Proceeds from maturities and calls of investment securities held-to-maturity	4,185	8,349
Proceeds from redemption of FHLB stock	10,574	22,634
Purchases of FHLB stock	10,420	0
Loan originations, net of collections	(269,464)	(150,012)
Purchases of premises and equipment	(2,205)	(334)
Proceeds from sales of premises and equipment	0	26
Proceeds from sales of other assets	0	1,855
Proceeds from sales of OREO	2,050	964
Net cash used in investing activities	(18,026)	(93,777)
Financing activities:
Net increase in deposits	90,560	102,845
Proceeds from stock options exercised	5	0
Tax effect of non-vested restricted stock	(541)	(395)
FHLB advance borrowings	0	95,000
Repayment of FHLB advances	0	(95,000)
Net cash provided by financing activities	90,024	102,450
Net increase in cash and cash equivalents	74,555	42,014
Cash and cash equivalents at beginning of period	77,805	83,089
Cash and cash equivalents at end of period	152,360	125,103
Supplemental disclosures of cash flow information:
Interest paid	13,272	7,981
Taxes paid	608	891
Transfers of Property, Plant & Equipment to Other Assets	928	394
Loans transferred to OREO	367	1,558
Bank Of America, Branch Locations
Investing activities:
Net cash assumed in acquisition	456,611	0
Prime Pacific Financial Services
Investing activities:
Net cash assumed in acquisition	$ 7,625	$ 0

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying interim condensed consolidated financial statements include the accounts of Cascade Bancorp (“Bancorp”), an Oregon-chartered single bank holding company, and its wholly-owned subsidiary, Bank of the Cascades (the “Bank”) (collectively, the “Company” or “Cascade”). All significant inter-company accounts and transactions have been eliminated in consolidation.

The interim condensed consolidated financial statements have been prepared by the Company without audit and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, certain financial information and footnotes have been omitted or condensed. In the opinion of management, the condensed consolidated financial statements include all adjustments (all of which are of a normal and recurring nature) necessary for the fair presentation of the results of the interim periods presented. In preparing the condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the balance sheets and income and expenses for the reporting periods. Actual results could differ from those estimates. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

The condensed consolidated financial statements as of and for the year ended December 31, 2015 were derived from the Company’s audited consolidated financial statements, but do not include all disclosures contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”). The interim condensed consolidated financial statements should be read in conjunction with the December 31, 2015 consolidated financial statements, including the notes thereto, included in the 2015 Annual Report.

XML

Business Combinations (Notes)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Business Combinations

Business Combinations

Prime Pacific Financial Services, Inc.

At close of business on August 1, 2016, (the "PPFS Acquisition Date”), the Company acquired Prime Pacific Financial Services, Inc. (“PPFS”), the holding company of Prime Pacific Bank, National Association, a Snohomish county, national banking association.

The merger was completed following the approval of PPFS shareholders, as well as the satisfaction of other customary closing conditions, including receipt of all requisite regulatory approvals.

Each share of PPFS common stock was converted into the right to receive 0.3050 shares of Cascade common stock. The conversion resulted in Cascade issuing 2,921,012 shares of its common stock.

The merger was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Preliminary goodwill of $2.2 million was calculated as the purchase premium after adjusting for the fair value of net assets acquired and represents the value expected from the synergies created and the economies of scale expected from combining the two banking organizations.

In most instances, determining the fair value of the acquired assets and assumed liabilities required us to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of those determinations relates to the valuation of acquired loans. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and other factors, such as prepayments. In accordance with the applicable accounting guidance for business combinations, there was no carry-over of PPFS’s previously established reserve for loan losses.

The following table provides a summary of the purchase price calculation as of the PPFS Acquisition Date and the identifiable assets purchased and the liabilities assumed at their estimated fair values. These fair value measurements are provisional based on third-party valuations that are currently under review and are subject to refinement for up to one year after the PPFS Acquisition Date based on additional information that may be obtained by us that existed as of the PPFS Acquisition Date.

Purchase Price (in thousands), except per share data
Cascade shares issued for PPFS shares			2,921,012
Cascade share price			$	5.56
Consideration from common stock conversion (0.3050 ratio)			$	16,238
Cash paid in lieu of fractional shares			$	1
Total purchase price			16,239
Assets
Cash and cash equivalents	$	7,625
FHLB stock	424
Loans, net	102,837
Premises and equipment	6,302
Deferred tax asset	2,156
Bank owned life insurance	1,491
Other assets	2,364
Total assets	$	123,199
Liabilities
Deposits	$	101,544
Other liabilities	7,939
Total liabilities	$	109,483
Net identifiable assets acquired			13,716
Intangible asset acquired (1)			342
Goodwill			$	2,181
(1) Intangible assets consist of core deposit intangibles. The useful life for which the core deposit intangible is being amortized is 10 years.

PPFS acquisition-related charges of $1.2 million and $1.3 million were recorded in the consolidated statement of comprehensive income for the three and nine months ended September 30, 2016, respectively. Such expenses were for human resources and professional services, among other categories, and include investment banker fees, legal and accounting support, as well as severance, IT and certain branch consolidation items.

The following table provides the unaudited pro forma information for the results of operations for the three and nine months ended September 30, 2016 and 2015, as if the acquisition had occurred on January 1, 2015. These adjustments reflect the impact of certain purchase accounting fair value measurements, primarily comprised of PPFS’s loan and deposit portfolios. In addition, the $1.3 million in acquisition-related expenses noted earlier are included in the nine months ended September 30, 2015. These unaudited pro forma results are presented for illustrative purposes only and are not intended to represent or be indicative of the actual results of operations of the combined banking organization that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations.

	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Net interest income	24,379	21,775	71,547	62,815
Non-interest expense	24,243	20,487	73,843	63,742
Net income	5,151	5,314	12,846	13,704
Net income per diluted share	0.07	0.07	0.17	0.18

Bank of America, National Association branches

On March 4, 2016, the Bank completed the acquisition of twelve Oregon branch locations and three Washington branch locations from Bank of America, National Association (the “branch acquisition”). This transaction allowed Cascade the opportunity to enhance and strengthen its footprint in Oregon, while providing entry into the Washington market. The Bank assumed approximately $469.9 million of branch deposits, paying a 2.00% premium on the average balance of deposits assumed, for a cash purchase price of $9.7 million.

The following is a condensed balance sheet disclosing the estimated fair value amounts of the branches acquired in the branch acquisition assigned to the major consolidated asset and liability captions at the acquisition date (dollars in thousands):

ASSETS
Cash and cash equivalents	$	456,611
Premises and equipment, net	3,113
Core deposit intangibles	6,427
Goodwill	3,984
Other assets	463
Total assets	$	470,598
LIABILITIES
Deposits	$	469,889
Other liabilities	709
Total liabilities	$	470,598

The core deposit intangible asset recognized as part of the branch acquisition will be amortized over its estimated useful life of approximately 10 years.

The fair value of demand deposit accounts assumed from the branch acquisition approximated the carrying value as checking and savings accounts have no stated maturity and are payable on demand.  Certificates of deposit were valued by comparing the contractual cost of the portfolio to a similar portfolio bearing current market rates.

Direct costs related to the branch acquisition were expensed as incurred in the quarter ended March 31, 2016. Such expenses primarily related to professional and legal services, human resource costs and information system charges. For the quarter ended March 31, 2016, the Company incurred $2.3 million of expenses related to the branch acquisition.

Pro forma income statements are not being presented as the information is not practicable to produce.

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Investment Securities

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following table presents investment securities at September 30, 2016 and December 31, 2015, showing that available-for-sale and held-to-maturity securities increased from December 31, 2015 primarily due to redeployment of cash assumed in the branch acquisition into securities (dollars in thousands):

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
September 30, 2016
Available-for-sale
U.S. Agency mortgage-backed securities (MBS)	$	168,862	$	2,715	$	(81	)	$	171,496
Non-agency MBS	269,508		1,540		(296		)	270,752
U.S. Agency asset-backed securities	6,876		605		(52		)	7,429
Corporate securities	72,695		382		(30		)	73,047
Mutual fund	534		17		—			551
	$	518,475	$	5,259	$	(459	)	$	523,275
Held-to-maturity
U.S. Agency MBS	$	102,226	$	4,816	$	(2	)	$	107,040
Obligations of state and political subdivisions	38,810		2,073		—			40,883
Tax credit investments	290		—		—			290
	$	141,326	$	6,889	$	(2	)	$	148,213
December 31, 2015
Available-for-sale
U.S. Agency MBS	$	154,691	$	2,698	$	(455	)	$	156,934
Non-agency MBS	118,765		477		(1,016		)	118,226
U.S. Agency asset-backed securities	7,468		800		(23		)	8,245
Corporate securities	26,199		121		—			26,320
Mutual fund	525		12		—			537
	$	307,648	$	4,108	$	(1,494	)	$	310,262
Held-to-maturity
U.S. Agency MBS	$	98,800	$	1,875	$	(5	)	$	100,670
Obligations of state and political subdivisions	421		—		—			421
Tax credit investments	40,203		968		(2		)	41,169
	$	139,424	$	2,843	$	(7	)	$	142,260

The following table presents the contractual maturities of investment securities at September 30, 2016 (dollars in thousands):

	Available-for-sale				Held-to-maturity
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
Due in one year or less	$	10,397	$	10,427	$	—	$	—
Due after one year through five years	68,008		68,389		30,431		31,165
Due after five years through ten years	40,715		41,060		90,472		95,870
Due after ten years	398,821		402,848		20,133		20,888
Mutual fund	534		551		—		—
Tax credit investments	—		—		290		290
	$	518,475	$	523,275	$	141,326	$	148,213

The following table presents the fair value and gross unrealized losses of the Bank’s investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Less than 12 months					12 months or more					Total
	Estimated  fair value		Unrealized losses			Estimated  fair value		Unrealized losses			Estimated  fair value		Unrealized losses
September 30, 2016
Available-for-sale
U.S. Agency MBS	$	33,576	$	(78	)	$	232	$	(3	)	$	33,808	$	(81	)
Non-Agency MBS	56,692		(296		)	—		—			56,692		(296		)
U.S. Agency asset-backed securities	1,929		(52		)	—		—			1,929		(52		)
Corporate Securities	13,430		(30		)	—		—			13,430		(30		)
	$	105,627	$	(456	)	$	232	$	(3	)	$	105,859	$	(459	)
Held-to-maturity
U.S. Agency MBS	$	1,882	$	(2	)	$	—	$	—		$	1,882	$	(2	)
Obligations of state and political subdivisions	708		—			—		—			708		—
	$	2,590	$	(2	)	$	—	$	—		$	2,590	$	(2	)
December 31, 2015
Available-for-sale
U.S. Agency MBS	$	23,630	$	(123	)	$	34,576	$	(332	)	$	58,206	$	(455	)
Non-Agency MBS	66,412		(765		)	12,225		(251		)	78,637		(1,016		)
U.S. Agency asset-backed securities	—		—			1,521		(23		)	1,521		(23		)
	$	90,042	$	(888	)	$	48,322	$	(606	)	$	138,364	$	(1,494	)
Held-to-maturity
U.S. Agency MBS	2,063		(5		)	—		—			$	2,063	$	(5	)
Obligations of state and political subdivisions	725		(2		)	—		—			725		(2		)
	$	2,788	$	(7	)	$	—	$	—		$	2,788	$	(7	)

The unrealized losses on investments in U.S. Agency and non-agency MBS and U.S. Agency asset-backed securities are primarily due to changes in market yield/rate spreads at September 30, 2016 and December 31, 2015 as compared to yield/rate spread relationships prevailing at the time specific investment securities were purchased. The Company had 38 and 46 securities in the loss position at September 30, 2016 and December 31, 2015, respectively. Management expects the fair value of these investment securities to recover as securities approach their maturity dates. Management does not believe that the above gross unrealized losses on investment securities are other-than-temporary. Accordingly, no impairment adjustments have been recorded.

Management intends to hold the investment securities classified as held-to-maturity until they mature, at which time the Company will receive full amortized cost value for such investment securities. Furthermore, as of September 30, 2016, management did not have the intent to sell any of the securities classified as held-to-maturity in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

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Loans and reserve for credit losses

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans and reserve for credit losses

Loans and reserve for credit losses

 The composition of the loan portfolio at September 30, 2016 and December 31, 2015 was as follows (dollars in thousands):

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
Originated loans (a):
Commercial real estate:
Owner occupied	$	280,901		15.8	%	$	263,095		18.1	%
Non-owner occupied	486,689			27.6	%	431,379			29.7	%
Total commercial real estate loans	767,590			43.4	%	694,474			47.8	%
Construction	168,558			9.6	%	119,723			8.2	%
Residential real estate	406,374			23.1	%	237,084			16.3	%
Commercial and industrial	378,700			21.5	%	363,335			25.0	%
Consumer	41,502			2.4	%	38,362			2.7	%
Total loans	1,762,724			100.0	%	1,452,978			100.0	%
Less:
Deferred loan fees	(1,917		)			(1,419		)
Reserve for loan losses	(25,238		)			(24,415		)
Loans, net	$	1,735,569				$	1,427,144
Acquired loans (b):
Commercial real estate:
Owner occupied	$	95,102		31.8	%	$	45,236		19.3	%
Non-owner occupied	102,088			34.2	%	95,183			40.5	%
Total commercial real estate loans	197,190			66.0	%	140,419			59.8	%
Construction	14,423			4.8	%	10,629			4.5	%
Residential real estate	59,092			19.8	%	61,306			26.1	%
Commercial and industrial	26,569			8.9	%	21,109			9.0	%
Consumer	1,510			0.5	%	1,488			0.6	%
Total loans	$	298,784		100.0	%	$	234,951		100.0	%
Total loans:
Commercial real estate:
Owner occupied	$	376,003		18.1	%	$	308,331		18.3	%
Non-owner occupied	588,777			28.6	%	526,562			31.2	%

Total commercial real estate loans	964,780			46.7	%	834,893			49.5	%
Construction	182,981			8.9	%	130,352			7.7	%
Residential real estate	465,466			22.6	%	298,390			17.7	%
Commercial and industrial	405,269			19.7	%	384,444			22.8	%
Consumer	43,012			2.1	%	39,850			2.3	%
Total loans	2,061,508			100.0	%	1,687,929			100.0	%
Less:
Deferred loan fees	(1,917		)			(1,419		)
Reserve for loan losses	(25,238		)			(24,415		)
Loans, net	$	2,034,353				$	1,662,095
(a) Loans organically made through the Company’s normal and customary origination process, including adjustable rate mortgage (“ARM”) purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

The following describes the distinction between originated and acquired loan portfolios and certain significant accounting policies relevant to each of these portfolios.

Originated loans

Loans originated for investment are stated at their principal amount outstanding adjusted for partial charge-offs, the reserve for loan losses and net deferred loan fees and costs. Interest income on loans is accrued over the term of the loans. Interest is not accrued on loans where collectability is uncertain. Accrued interest on loans is presented in “Other assets” on the condensed consolidated balance sheet. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan as an adjustment to the related loan yield.

Approximately 76.1% of the Bank’s originated loan portfolio at September 30, 2016 consisted of real estate-related loans, including construction and development loans, residential mortgage loans, and commercial loans secured by commercial real estate. At September 30, 2016, approximately 78.2% of the Bank’s total portfolio (inclusive of acquired loans) consisted of real estate-related loans as described above. The Bank’s results of operations and financial condition are affected by general economic trends and in particular, the strength of the local residential and commercial real estate markets in Central, Southern and Northwest Oregon, as well as the greater Boise/Treasure Valley, Idaho and Seattle, Washington metro areas. Real estate values could be affected by, among other things, a worsening of national and local economic conditions, an increase in foreclosures, a decline in home sale volumes, and an increase in interest rates. Furthermore, the Bank may experience an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws, or default on their loans or other obligations to the Bank in the event of a sustained downturn in business and economic conditions generally or specifically in the principal markets in which the Bank does business. An increase in the number of delinquencies, bankruptcies, or defaults could result in a higher level of non-performing assets, net charge-offs, and loan loss provision. Management expects to diversify its commercial real estate (“CRE”) concentration over time, but real estate-related loans will remain a significant portfolio component due to the nature of the economies, businesses, and markets the Bank serves.

In the normal course of business, the Bank may participate portions of loans to third parties in order to extend the Bank’s lending capability or to mitigate risk. At September 30, 2016 and December 31, 2015, the portion of loans participated to third parties (which are not included in the accompanying condensed consolidated financial statements) totaled $50.7 million and $44.2 million, respectively.

Acquired loans

PPFS

Acquired loans include those loans purchased by the Company in its acquisition of PPFS, which was completed on August 1, 2016. These loans were recorded at estimated fair value at the PPFS Acquisition Date. The fair value estimates for acquired loans are based on expected prepayments, charge-offs and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the PPFS acquired loans at acquisition was a reduction of $2.3 million, representing a valuation adjustment for interest rate and credit which will be accreted over the life of the loans (approximately 10 years). As of September 30, 2016, the remaining net fair value adjustment to the PPFS acquired loans was $2.3 million.

Home

Acquired loans also include those loans purchased by the Company in its acquisition of Home Federal Bancorp, Inc. (“Home”), which was completed on May 16, 2014 (the “Home Acquisition Date”). These loans were recorded at estimated fair value at the Home Acquisition Date. The fair value estimates for acquired loans are based on expected prepayments, charge-offs and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the Home acquired loans at acquisition was a reduction of $6.0 million, representing a valuation adjustment for interest rate and credit which will be accreted over the life of the loans (approximately 10 years). As of September 30, 2016, the remaining net fair value adjustment was $1.9 million.

Of the PPFS and Home loans acquired on the PPFS Acquisition Date and Home Acquisition Date, as applicable, and still held at September 30, 2016, $9.8 million, or 3.3%, were graded substandard. With the amount of classified loans acquired being nominal, all loans acquired are treated in a manner consistent with originated loans for credit risk management and accounting purposes.

As of September 30, 2016, $22.3 million, or 7.5% of the $298.8 million in acquired loans were covered under loss sharing agreements with the FDIC (“covered loans”) that were entered into in September 2009 and September 2010 between the FDIC and Home. The loss sharing agreements have limited terms (10 years for net losses on single-family residential real estate loans, as defined by the FDIC, five years for losses on non-residential real estate loans, as defined by the FDIC, and an additional three years with respect to recoveries on non-residential real estate loans). After the expiration of the loss sharing agreements, the Company will not be indemnified for losses and related expenses on covered loans. When the loss sharing agreements expire, the Company’s and the Bank’s risk-based capital ratios will be reduced. While the agreements are in place, the covered loans receive a 20% risk-weighting. When the agreements expire, the risk-weighting for previously covered loans will most likely increase to 100%, based on current regulatory capital definitions. Nearly all of the assets remaining in the covered loans portfolio are non-single family covered loans. Therefore, most of the covered loans were no longer indemnified after September 30, 2014 or were no longer indemnified after September 30, 2015. With the amount of classified loans covered under these agreements being nominal, amounts that may be due to or due from the FDIC under loss sharing agreements will be accounted for on a cash basis.

A net loss share payable was recorded at the Home Acquisition Date that represents the estimated value of reimbursement the Company expects to pay to the FDIC for recoveries net of incurred losses on covered loans. These expected reimbursements are recorded as part of covered loans in the accompanying consolidated balance sheets. Upon the determination of an incurred loss or recovery, the loss share receivable/payable will be changed by the amount due to or due from the FDIC.

Changes in the loss share payable associated with covered loans for the three and nine months ended September 30, 2016 were as follows (dollars in thousands):

	Three months ended			Nine months ended
	September 30, 2016
Balance at beginning of period	$	201		$	289
Paid to FDIC	(201		)	(857		)
Increase due to impairment	—			(53		)
FDIC reimbursement	396			1,077
Shared loss expenses	(28		)	(92		)
Adjustments from prior periods	—			4
Balance at end of period	$	368		$	368

Reserve for loan losses

The reserve for loan losses represents management’s estimate of known and inherent losses in the loan portfolio as of the condensed consolidated balance sheet date and is recorded as a reduction to loans. The reserve for loan losses is increased by charges to operating expense through the loan loss provision, and decreased by loans charged-off, net of recoveries. The reserve for loan losses requires complex subjective judgments as a result of the need to make estimates about matters that are uncertain. The reserve for loan losses is maintained at a level currently considered adequate to provide for potential loan losses based on management’s assessment of various factors affecting the loan portfolio.

However, the reserve for loan losses is based on estimates and actual losses may vary from the current estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Therefore, management cannot provide assurance that, in any particular period, the Company will not have significant losses in relation to the amount reserved. The level of the reserve for loan losses is also determined after consideration of bank regulatory guidance and recommendations and is subject to review by such regulatory authorities who may require increases or decreases to the reserve based on their evaluation of the information available to them at the time of their examinations of the Bank.

For purposes of assessing the appropriate level of the reserve for loan losses, the Company analyzes loans and commitments to loan, and the amount of reserves allocated to loans and commitments to loan in each of the following reserve categories: pooled reserves, specifically identified reserves for impaired loans, and the unallocated reserve. Also, for purposes of analyzing loan portfolio credit quality and determining the appropriate level of reserve for loan losses, the Company identifies loan portfolio segments and classes based on the nature of the underlying loan collateral.

Risk ratings for individual shared national credits (“SNC”) are estimated using analysis of both public debt ratings and internal ratings. Expected loss rates are determined based upon historical published specific loss data for similar loans based on average losses and losses stratified by public debt ratings. Public ratings combined with internal risk rates are used to determine a minimum historical loss factor for each SNC loan. This amount may be increased for qualitative conditions including macroeconomic environment and observations by the Company’s SNC management group. The SNC lending strategy is intended to diversify the Company’s credit risk profile geographically and by industry. Additionally, such loans enhance the Company’s interest rate risk profile as they float with LIBOR rates.

The increase in the reserve for loan losses from December 31, 2015 to September 30, 2016 was related to net recoveries and loan portfolio growth during the period. Management believes the amount of ALLL is appropriate as of September 30, 2016. The unallocated reserve for loan losses at September 30, 2016 has decreased $0.6 million from the balance at December 31, 2015. Management believes that the amount of unallocated reserve for loan losses is appropriate and will continue to evaluate the amount going forward.

Acquired reserve for loan losses

The fair value estimates for acquired loans are based on expected prepayments, charge-offs, and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the acquired loans was $6.0 million and $2.3 million for Home and PPFS, respectively, at the time of acquisition representing a valuation adjustment for interest rate and credit quality. The credit portion of the fair value adjustment not accreted at any point in time represents the estimated reserve for loan losses for acquired loans. If the Company determines that this amount is insufficient, a provision to the reserve for loan losses will be made. As of September 30, 2016, the remaining net fair value adjustment was $1.9 million and $2.3 million for Home and PPFS, respectively, and no additional reserve for acquired loans was required.

Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the three and nine months ended September 30, 2016 and 2015 were as follows (dollars in thousands):

	Commercial real estate		Construction		Residential real estate		Commercial  and  industrial			Consumer			Unallocated			Total
For the three months ended September 30, 2016
Allowance for Loan Losses
Balance at June 30, 2016	$	4,391	$	1,259	$	2,674	$	11,982		$	978		$	3,382		$	24,666
Loan loss provision (credit)	1,554		271		1,044		(1,766		)	441			(1,544		)	—
Recoveries	74		327		45		428			208			—			1,082
Loans charged off	—		—		—		(95		)	(415		)	—			(510		)
Balance at end of period	$	6,019	$	1,857	$	3,763	$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments
Balance at June 30, 2016	$	48	$	268	$	25	$	75		$	24		$	—		$	440
Provision for unfunded loan commitments	—		—		—		—			—			—			—
Balance at end of period	$	48	$	268	$	25	$	75		$	24		$	—		$	440
Reserve for credit losses
Reserve for loan losses	$	6,019	$	1,857	$	3,763	$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments	48		268		25		75			24			—			440
Total reserve for credit losses	$	6,067	$	2,125	$	3,788	$	10,624		$	1,236		$	1,838		$	25,678

	Commercial real estate			Construction		Residential real estate			Commercial  and  industrial			Consumer			Unallocated			Total
For the nine months ended September 30, 2016
Allowance for Loan Losses
Balance at December 31, 2015	$	3,934		$	1,044	$	2,075		$	13,969		$	917		$	2,476		$	24,415
Loan loss provision (credit)	(667		)	407		1,530			(1,554		)	922			(638		)	—
Recoveries	2,792			406		222			1,190			715			—			5,325
Loans charged off	(40		)	—		(64		)	(3,056		)	(1,342		)	—			(4,502		)
Balance at end of period	$	6,019		$	1,857	$	3,763		$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments
Balance at December 31, 2015	$	48		$	268	$	25		$	75		$	24		$	—		$	440
Provision for unfunded loan commitments	—			—		—			—			—			—			—
Balance at end of period	$	48		$	268	$	25		$	75		$	24		$	—		$	440
Reserve for credit losses
Reserve for loan losses	$	6,019		$	1,857	$	3,763		$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments	48			268		25			75			24			—			440
Total reserve for credit losses	$	6,067		$	2,125	$	3,788		$	10,624		$	1,236		$	1,838		$	25,678

	Commercial real estate			Construction			Residential real estate			Commercial  and  industrial			Consumer			Unallocated		Total
For the three months ended September 30, 2015
Allowance for Loan Losses
Balance at June 30, 2015	$	5,032		$	1,356		$	2,463		$	11,355		$	1,001		$	2,294	$	23,501
Loan loss provision (credit)	(490		)	(293		)	(162		)	(2,245		)	99			3,091		—
Recoveries	408			155			162			2,885			179			—		3,789
Loans charged off	—			—			(50		)	(293		)	(324		)	—		(667		)
Balance at end of period	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments
Balance at June 30, 2015	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Provision for unfunded loan commitments	—			—			—			—			—			—		—
Balance at end of period	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Reserve for credit losses
Reserve for loan losses	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments	48			268			25			75			24			—		440
Total reserve for credit losses	$	4,998		$	1,486		$	2,438		$	11,777		$	979		$	5,385	$	27,063

	Commercial real estate			Construction			Residential real estate			Commercial  and  industrial			Consumer			Unallocated		Total
For the nine months ended September 30, 2015
Allowance for Loan Losses
Balance at December 31, 2014	$	5,614		$	1,133		$	2,121		$	6,844		$	1,047		$	5,294	$	22,053
Loan loss provision (credit)	(4,397		)	(193		)	(60		)	2,024			535			91		(2,000		)
Recoveries	4,011			278			746			3,440			457			—		8,932
Loans charged off	(278		)	—			(394		)	(606		)	(1,084		)	—		(2,362		)
Balance at end of period	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments
Balance at December 31, 2014	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Provision for unfunded loan commitments	—			—			—			—			—			—		—
Balance at end of period	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Reserve for credit losses
Reserve for loan losses	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments	48			268			25			75			24			—		440
Total reserve for credit losses	$	4,998		$	1,486		$	2,438		$	11,777		$	979		$	5,385	$	27,063

An individual loan is impaired when, based on current information and events, management believes that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The following table presents the reserve for loan losses and the recorded investment in loans by portfolio segment and impairment evaluation method at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Reserve for loan losses						Recorded investment in loans
	Individually evaluated for impairment		Collectively evaluated for impairment		Total		Individually evaluated for impairment		Collectively evaluated for impairment		Total
September 30, 2016
Commercial real estate	$	74	$	5,945	$	6,019	$	4,329	$	960,451	$	964,780
Construction	—		1,857		1,857		—		182,981		182,981
Residential real estate	—		3,763		3,763		—		465,466		465,466
Commercial and industrial	25		10,524		10,549		7,471		397,798		405,269
Consumer	—		1,212		1,212		—		43,012		43,012
	$	99	$	23,301	23,400		$	11,800	$	2,049,708	$	2,061,508
Unallocated					1,838
					$	25,238
December 31, 2015
Commercial real estate	$	78	$	3,856	$	3,934	$	3,835	$	831,058	$	834,893
Construction	—		1,044		1,044		365		129,987		130,352
Residential real estate	—		2,075		2,075		18		298,372		298,390
Commercial and industrial	164		13,805		13,969		2,724		381,720		384,444
Consumer	—		917		917		—		39,850		39,850
	$	242	$	21,697	21,939		$	6,942	$	1,680,987	$	1,687,929
Unallocated					2,476
					$	24,415

The above reserve for loan losses includes an unallocated allowance of $1.8 million at September 30, 2016 and $2.5 million at December 31, 2015. The change in the unallocated allowance is due to the increase in qualitative factors impacting the reserve, partially offset by net recoveries.

The Company uses credit risk ratings, which reflect the Bank’s assessment of a loan’s risk or loss potential, for purposes of assessing the appropriate level of reserve for loan losses. The Bank’s credit risk rating definitions along with applicable borrower characteristics for each credit risk rating are as follows:

Acceptable

The borrower is a reasonable credit risk and demonstrates the ability to repay the loan from normal business operations. Loans are generally made to companies operating in an economy and/or industry that is generally sound. The borrower tends to operate in regional or local markets and has achieved sufficient revenues for the business to be financially viable. The borrowers financial performance has been consistent in normal economic times and has been average or better than average for its industry.

A loan can also be considered Acceptable even though the borrower may have some vulnerability to downturns in the economy due to marginally satisfactory working capital and debt service cushion. Availability of alternate financing sources may be limited or nonexistent. In some cases, the borrower’s management may have limited depth or continuity but is still considered capable. An adequate primary source of repayment is identified while secondary sources may be illiquid, more speculative, less readily identified, or reliant upon collateral liquidation. Loan agreements will be well defined, including several financial performance covenants and detailed operating covenants. This category also includes commercial loans to individuals with average or better than average capacity to repay.

Pass-Watch

Loans are graded Pass-Watch when temporary situations increase the level of the Bank’s risk associated with the loan, and remain graded Pass-Watch until the situation has been corrected. These situations may involve one or more weaknesses in cash flow, collateral value or indebtedness that could, if not corrected within a reasonable period of time, jeopardize the full repayment of the debt. In general, loans in this category remain adequately protected by the borrower’s net worth and paying capacity, or pledged collateral.

Special Mention

A Special Mention credit has potential weaknesses that may, if not checked or corrected, weaken the loan or leave the Bank inadequately protected at some future date. Loans in this category are deemed by management of the Bank to be currently protected but reflect potential problems that warrant more than the usual management attention but do not justify a Substandard classification.

Substandard

Substandard loans are those inadequately protected by the net worth and paying capacity of the obligor and/or by the value of the pledged collateral, if any. Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision and borrowers are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants.

CRE and construction loans are classified Substandard when well-defined weaknesses are present which jeopardize the orderly liquidation of the loan. Well-defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, and/or the project’s failure to fulfill economic expectations. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Substandard loans also include impaired loans. Impaired loans bear the characteristics of Substandard loans as described above, and the Company has determined it does not expect timely payment of all contractually due interest and principal. Impaired loans may be adequately secured by collateral.

During the nine months ended September 30, 2016, the Bank saw relatively steady credit quality metrics. An improvement in Special Mention loans was partially offset by an increase in the Substandard portfolio. Increases in the Substandard loan balances were largely due to certain energy/mining sector SNCs included in commercial and industrial (“C&I”) loans. Aggregate portfolio exposure to the energy/mining sector is less than 1% of total loans outstanding.

The following table presents, by portfolio class, the recorded investment in loans by internally assigned grades at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Loan grades
	Acceptable		Pass-Watch		Special Mention		Substandard		Total
September 30, 2016
Originated loans (a):
Commercial real estate:
Owner occupied	$	266,610	$	6,811	$	1,091	$	6,389	$	280,901
Non-owner occupied	479,207		1,589		4,520		1,373		486,689
Total commercial real estate loans	745,817		8,400		5,611		7,762		767,590
Construction	168,558		—		—		—		168,558
Residential real estate	405,923		—		—		451		406,374
Commercial and industrial	340,082		10,274		5,173		23,171		378,700
Consumer	41,476		—		—		26		41,502
	$	1,701,856	$	18,674	$	10,784	$	31,410	$	1,762,724
Acquired loans (b):
Commercial real estate:
Owner occupied	$	89,484	$	2,441	$	1,563	$	1,614	$	95,102
Non-owner occupied	82,873		3,851		8,995		6,369		102,088
Total commercial real estate loans	172,357		6,292		10,558		7,983		197,190
Construction	14,363		—		—		60		14,423
Residential real estate	56,461		1,550		—		1,081		59,092
Commercial and industrial	24,750		557		588		674		26,569
Consumer	1,510		—		—		—		1,510
	$	269,441	$	8,399	$	11,146	$	9,798	$	298,784
Total loans:
Commercial real estate:
Owner occupied	$	356,094	$	9,252	$	2,654	$	8,003	$	376,003
Non-owner occupied	562,080		5,440		13,515		7,742		588,777
Total commercial real estate loans	918,174		14,692		16,169		15,745		964,780
Construction	182,921		—		—		60		182,981
Residential real estate	462,384		1,550		—		1,532		465,466
Commercial and industrial	364,832		10,831		5,761		23,845		405,269
Consumer	42,986		—		—		26		43,012
	$	1,971,297	$	27,073	$	21,930	$	41,208	$	2,061,508
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

	Loan grades
	Acceptable		Pass-Watch		Special Mention		Substandard		Total
December 31, 2015
Originated loans (a):
Commercial real estate:
Owner occupied	$	243,113	$	8,623	$	1,426	$	9,933	$	263,095
Non-owner occupied	411,137		9,825		4,522		5,895		431,379
Total commercial real estate loans	654,250		18,448		5,948		15,828		694,474
Construction	118,752		—		971		—		119,723
Residential real estate	236,574		—		—		510		237,084
Commercial and industrial	328,934		11,220		13,729		9,452		363,335
Consumer	38,350		—		—		12		38,362
	$	1,376,860	$	29,668	$	20,648	$	25,802	$	1,452,978
Acquired loans (b):
Commercial real estate:
Owner occupied	$	34,081	$	3,480	$	7,341	$	334	$	45,236
Non-owner occupied	71,334		2,751		9,386		11,712		95,183
Total commercial real estate loans	105,415		6,231		16,727		12,046		140,419
Construction	10,597		—		—		32		10,629
Residential real estate	60,151		—		—		1,155		61,306
Commercial and industrial	17,034		153		3,461		461		21,109
Consumer	1,485		—		—		3		1,488
	$	194,682	$	6,384	$	20,188	$	13,697	$	234,951
Total loans:
Commercial real estate:
Owner occupied	$	277,194	$	12,103	$	8,767	$	10,267	$	308,331
Non-owner occupied	482,471		12,576		13,908		17,607		526,562
Total commercial real estate loans	759,665		24,679		22,675		27,874		834,893
Construction	129,349		—		971		32		130,352
Residential real estate	296,725		—		—		1,665		298,390
Commercial and industrial	345,968		11,373		17,190		9,913		384,444
Consumer	39,835		—		—		15		39,850
	$	1,571,542	$	36,052	$	40,836	$	39,499	$	1,687,929
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

The following table presents, by portfolio class, an age analysis of past due loans, including loans placed on non-accrual at September 30, 2016 and December 31, 2015 (dollars in thousands):

30-89 days past due 90 days or more past due Total past due Current Total loans

September 30, 2016
Originated loans (a):
Commercial real estate:
Owner occupied	$	207	$	490	$	697	$	280,204	$	280,901
Non-owner occupied	—		—		—		486,689		486,689
Total commercial real estate loans	207		490		697		766,893		767,590
Construction	—		—		—		168,558		168,558
Residential real estate	2,625		—		2,625		403,749		406,374
Commercial and industrial	156		171		327		378,373		378,700
Consumer	203		26		229		41,273		41,502
	$	3,191	$	687	$	3,878	$	1,758,846	$	1,762,724
Acquired loans (b):
Commercial real estate:
Owner occupied	$	11	$	—	$	11	$	95,091	$	95,102
Non-owner occupied	—		—		—		102,088		102,088
Total commercial real estate loans	11		—		11		197,179		197,190
Construction	—		21		21		14,402		14,423
Residential real estate	1,172		586		1,758		57,334		59,092
Commercial and industrial	225		8		233		26,336		26,569
Consumer	28		—		28		1,482		1,510
	$	1,436	$	615	$	2,051	$	296,733	$	298,784
Total loans:
Commercial real estate:
Owner occupied	$	218	$	490	$	708	$	375,295	$	376,003
Non-owner occupied	—		—		—		588,777		588,777
Total commercial real estate loans	218		490		708		964,072		964,780
Construction	—		21		21		182,960		182,981
Residential real estate	3,797		586		4,383		461,083		465,466
Commercial and industrial	381		179		560		404,709		405,269
Consumer	231		26		257		42,755		43,012
	$	4,627	$	1,302	$	5,929	$	2,055,579	$	2,061,508
December 31, 2015
Originated loans (a):
Commercial real estate:
Owner occupied	$	1,020	$	719	$	1,739	$	261,356	$	263,095
Non-owner occupied	593		—		593		430,786		431,379
Total commercial real estate loans	1,613		719		2,332		692,142		694,474
Construction	—		—		—		119,723		119,723
Residential real estate	196		—		196		236,888		237,084
Commercial and industrial	346		239		585		362,750		363,335
Consumer	209		12		221		38,141		38,362
	$	2,364	$	970	$	3,334	$	1,449,644	$	1,452,978
Acquired loans (b):
Commercial real estate:

Owner occupied	$	—	$	—	$	—	$	45,236	$	45,236
Non-owner occupied	2,049		—		2,049		93,134		95,183
Total commercial real estate loans	2,049		—		2,049		138,370		140,419
Construction	46		—		46		10,583		10,629
Residential real estate	748		534		1,282		60,024		61,306
Commercial and industrial	6		5		11		21,098		21,109
Consumer	53		—		53		1,435		1,488
	$	2,902	$	539	$	3,441	$	231,510	$	234,951
Total loans:
Commercial real estate:
Owner occupied	$	1,020	$	719	$	1,739	$	306,592	$	308,331
Non-owner occupied	2,642		—		2,642		523,920		526,562
Total commercial real estate loans	3,662		719		4,381		830,512		834,893
Construction	46		—		46		130,306		130,352
Residential real estate	944		534		1,478		296,912		298,390
Commercial and industrial	352		244		596		383,848		384,444
Consumer	262		12		274		39,576		39,850
	$	5,266	$	1,509	$	6,775	$	1,681,154	$	1,687,929
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

Loans contractually past due 90 days or more on which the Company continued to accrue interest were $0.06 million and $0.07 million at September 30, 2016 and December 31, 2015, respectively.

The following table presents information related to impaired loans, by portfolio class, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Impaired loans
	With a related allowance		Without a related allowance		Total recorded balance		Unpaid principal balance		Related allowance
September 30, 2016
Commercial real estate:
Owner occupied	$	815	$	1,004	$	1,819	$	2,437	$	54
Non-owner occupied	632		1,878		2,510		2,511		20
Total commercial real estate loans	1,447		2,882		4,329		4,948		74
Construction	—		—		—		—		—
Residential real estate	—		—		—		—		—
Commercial and industrial	76		7,395		7,471		11,119		25
Consumer	—		—		—		—		—
	$	1,523	$	10,277	$	11,800	$	16,067	$	99
December 31, 2015
Commercial real estate:
Owner occupied	$	1,032	$	2,157	$	3,189	$	4,285	$	73
Non-owner occupied	646		—		646		646		5
Total commercial real estate loans	1,678		2,157		3,835		4,931		78
Construction	—		365		365		365		—
Residential real estate	—		18		18		18		—
Commercial and industrial	2,539		185		2,724		3,366		164
Consumer	—		—		—		—		—
	$	4,217	$	2,725	$	6,942	$	8,680	$	242

The increase in impaired C&I loans relates to energy/mining SNCs. Aggregate portfolio exposure to the energy/mining sector is less than 1% of total loans outstanding. At September 30, 2016 and December 31, 2015, the total recorded balance of impaired loans in the above table included $0.6 million and $0.8 million, respectively, of troubled debt restructuring (“TDR”) loans which were not on non-accrual status.

The following table presents, by portfolio class, the average recorded investment in impaired loans for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Commercial real estate:
Owner occupied	$	1,912	$	3,063	$	2,129	$	3,225
Non-owner occupied	2,525		1,072		2,540		8,297
Total commercial real estate loans	4,437		4,135		4,669		11,522
Construction	—		443		—		543
Residential real estate	—		28		—		66
Commercial and industrial	7,462		2,712		7,534		2,815
Consumer	—		—		—		—
	$	11,899	$	7,318	$	12,203	$	14,946

Interest income recognized for cash payments received on impaired loans for the three and nine months ended September 30, 2016 was $0.5 million and $1.1 million, respectively.

Information with respect to the Company’s non-performing loans, by portfolio class, at September 30, 2016 and December 31, 2015 is as follows (dollars in thousands):

	September 30, 2016		December 31, 2015
Commercial real estate:
Owner occupied	$	1,353	$	2,742
Non-owner occupied	2,711		434
Total commercial real estate loans	4,064		3,176
Construction	39		—
Residential real estate	1,443		1,427
Commercial and industrial	6,937		447
Consumer	—		3
Total non-accrual loans	$	12,483	$	5,053
Accruing loans which are contractually past due 90 days or more:
Construction	21		—
Commercial and industrial	12		56
Consumer	26		12
Total accruing loans which are contractually past due 90 days or more	$	59	$	68

TDRs

The Company allocated no specific reserves to customers whose loan terms had been modified in TDRs as of September 30, 2016 and December 31, 2015. TDRs involve the restructuring of loan terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. As indicated above, TDRs may also include loans to borrowers experiencing financial distress that renewed at existing contractual rates, but below market rates for comparable credit quality. The Company has been actively utilizing these programs and working with its customers to improve obligor cash flow and related prospects for repayment. Concessions may include, but are not limited to, interest rate reductions, principal forgiveness, deferral of interest payments, extension of the maturity date, and other actions intended to minimize potential losses to the Company. For each commercial loan restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the new structure can be successful and whether cash flows will be sufficient to support the restructured debt. Generally, if the loan is on accrual status at the time of restructuring, it will remain on accrual status after the restructuring. After six consecutive payments under the restructured terms, a non-accrual restructured loan is reviewed for possible upgrade to accrual status.

Typically, once a loan is identified as a TDR it will retain that designation until it is paid off, because restructured loans generally are not at market rates following restructuring. Under certain circumstances, a TDR may be removed from TDR status if it is determined to no longer be impaired and the loan is at a competitive interest rate. Under such circumstances, allowance allocations for loans removed from TDR status would be based on the historical allocation for the applicable loan grade and loan class.

There were no loans modified and recorded as TDRs during the three months ended September 30, 2016 and 2015.

The following table presents, by portfolio segment, the information with respect to the Company’s loans that were modified and recorded as TDRs during the nine months ended September 30, 2016 and 2015 (dollars in thousands).

	Nine months ended September 30,
	2016			2015
	Number of loans	TDR outstanding recorded investment		Number of loans	TDR outstanding recorded investment
Commercial real estate	—	$	—	—	$	—
Construction	—	—		—	—
Residential real estate	—	—		—	—
Commercial and industrial	1	22		—	—
Consumer	—	—		—	—
	1	$	22	—	$	—

At both September 30, 2016 and 2015, the Company had no remaining commitments to lend on loans accounted for as TDRs.

The following table presents, by portfolio segment, the post modification recorded investment for TDRs restructured during the nine months ended September 30, 2016.

Nine months ended September 30, 2016	Rate reduction		Term extension		Rate reduction and term extension		Total
Commercial real estate	$	—	$	—	$	—	$	—
Construction	—		—		—		—
Residential real estate	—		—		—		—
Commercial and industrial	—		22		—		22
Consumer	—		—		—		—
	$	—	$	22	$	—	$	22

There were no TDRs that had payment defaults during the nine months endedSeptember 30, 2016 or 2015 that had been previously restructured within the twelve months prior to September 30, 2016 or 2015.

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Other Real Estate Owned ("OREO"), net

9 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

Other Real Estate Owned (OREO), net

Other Real Estate Owned (“OREO”), net

The following table presents activity related to OREO for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	2,993		$	4,040		$	3,274		$	3,309
Additions	367			—			367			1,558
Dispositions	(1,683		)	(162		)	(1,964		)	(2,541		)
Change in valuation allowance	—			(7		)	—			1,545
Balances at end of period	$	1,677		$	3,871		$	1,677		$	3,871

The following table summarizes activity in the OREO valuation allowance for the periods shown (dollars in thousands):

	Three months ended    September 30,				Nine months ended    September 30,
	2016		2015		2016		2015
Balance at beginning of period	$	776	$	771	$	776	$	2,323
Additions to the valuation allowance	—		7		—		12
Reductions due to sales	—		—		—		(1,557		)
Balance at end of period	$	776	$	778	$	776	$	778

The following table summarizes OREO (income) expenses for the periods shown (dollars in thousands):

	Three months ended    September 30,					Nine months ended    September 30,
	2016			2015		2016			2015
Operating costs	$	49		$	53	$	215		$	159
Net (gains) losses on dispositions	(6		)	62		(246		)	(160		)
Increases in valuation allowance	—			7		167			12
Total	$	43		$	122	$	136		$	11

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Mortgage Servicing Rights ("MSRs")

9 Months Ended

Sep. 30, 2016

Transfers and Servicing [Abstract]

Mortgage Servicing Rights (MSRs)

Mortgage Servicing Rights (“MSRs”)

The Bank sells a predominant share of the fixed rate mortgage loans it originates into the secondary market while retaining servicing of such loans. Mortgage Servicing Rights (“MSRs”), included in other assets in the condensed consolidated financial statements as of September 30, 2016 and December 31, 2015, are accounted for at the lower of origination value less accumulated amortization or current fair value. The net carrying value of MSRs at September 30, 2016 and December 31, 2015 was $2.2 million. There was no valuation allowance at September 30, 2016 or December 31, 2015.

The following table presents activity in MSRs for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	2,229		$	2,276		$	2,186		$	2,248
Additions	197			130			579			506
Amortization	(180		)	(195		)	(519		)	(543		)
Balances at end of period	$	2,246		$	2,211		$	2,246		$	2,211

Mortgage banking income, net, consisted of the following for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Origination and processing fees	70			94			249			538
Gain on sales of loans, net	752			551			2,004			1,582
Servicing fees	215			174			517			512
Amortization	(180		)	(195		)	(519		)	(543		)
Mortgage banking income, net	$	857		$	624		$	2,251		$	2,089

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Goodwill and other intangible assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets

Goodwill and other intangible assets

At close of business on August 1, 2016, the Company completed the PPFS acquisition. The Company recorded $2.2 million of goodwill in connection with the PPFS acquisition.

On March 4, 2016, the Bank completed the branch acquisition. The Company recorded $4.0 million of goodwill in connection with the branch acquisition.

The Company recorded $78.6 million of goodwill in connection with the acquisition of Home in 2014. In accordance with the Intangibles - Goodwill and Other topic of the Financial Accounting Standards Board (“FASB”) ASC, goodwill is not amortized but is reviewed for potential impairment at the reporting unit level. Management analyzes its goodwill for impairment on an annual basis and between annual tests in certain circumstances, such as upon material adverse changes in legal, business, regulatory and economic factors. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. The Company performed an impairment assessment as of December 31, 2015 and concluded that there was no impairment to goodwill.

Core deposit intangibles (“CDI”) are evaluated for impairment if events and circumstances indicate a possible impairment. The CDI are amortized on a straight-line basis over an estimated life of 10 years. The following table sets forth activity for CDI for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands).

	Three months ended September 30,						Nine months ended   September 30,
	2016			2015			2016			2015
Gross CDI balance, beginning of period	$	14,623		$	8,196		$	8,196		$	8,196
Accumulated amortization, beginning of period	(1,903		)	(923		)	(1,333		)	(513		)
CDI, net, beginning of period	12,720			7,273			6,863			7,683
Established through acquisitions	342			—			6,770			—
CDI current period amortization	(371		)	(205		)	(942		)	(615		)
Total CDI, end of period	$	12,691		$	7,068		$	12,691		$	7,068

The following table provides the estimated future amortization expense of CDI for the remaining period ending December 31, 2016 and the succeeding four years (dollars in thousands):

Years Ending December 31,
2016	$	374
2017	1,497
2018	1,497
2019	1,497
2020	1,497

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Basic and Diluted Net Income per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Basic and Diluted Net Income per Share

Basic and Diluted Net Income per Share

The Company’s basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company’s diluted net income per share is computed by dividing net income by the weighted-average number of common shares outstanding plus any incremental shares arising from the dilutive effect of stock-based compensation.

The numerators and denominators used in computing basic and diluted net income per common share for the three and nine months ended September 30, 2016 and 2015 can be reconciled as follows (dollars in thousands, except per share data):

	Three months ended    September 30,				Nine months ended    September 30,
	2016		2015		2016		2015
Net income	$	4,089	$	5,099	$	10,853	$	15,012
Weighted-average shares outstanding - basic	74,001,997		71,868,045		72,532,961		71,743,576
Dilutive securities	167,268		101,323		1,342,762		105,835
Weighted-average shares outstanding - diluted	74,169,265		71,969,368		73,875,723		71,849,411
Common stock equivalent shares excluded due to antidilutive effect	3,319,862		3,361,774		3,348,537		3,361,774
Basic and diluted:
Net income per common share	$	0.06	$	0.07	$	0.15	$	0.21
Net income per common share (diluted)	$	0.06	$	0.07	$	0.15	$	0.21

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

At September 30, 2016, 1,621,245 shares reserved under the Company’s stock-based compensation plans were available for future grants.

During the nine months ended September 30, 2016, 678,051 shares of restricted stock, which vest between 2016 and 2021, were granted with a weighted-average grant date fair value of $5.69. During the same period, the Company converted existing PPFS stock options into 14,222 Cascade Bancorp stock options with a weighted-average exercise price of $3.71 per share, of which 100% were vested upon conversion. During the nine months ended September 30, 2015, the Company granted 397,472 shares of restricted stock, which vest between 2016 and 2020, with a weighted-average grant date fair value of $4.98 per share. During the same period, 3,300,000 stock options, which vest over a three to five year period, were granted. The Company used the Black-Scholes option-pricing model with the following weighted-average assumptions to value options that were granted in 2015: 

	2015
Dividend yield	0	%
Expected volatility	36.6	%
Risk-free interest rate	1.3	%
Expected option lives	5.0 years

The dividend yield was based on historical dividend information. The Company has not paid dividends since the third quarter of 2008 resulting in the dividend yield of 0.0%. The expected volatility was based on the historical volatility of the Company’s common stock price as adjusted for certain historical periods of extraordinary volatility in order to provide a basis for a reasonable estimate of fair value. Periods that were determined to be extraordinary were replaced with the mean volatility of like publicly-traded community banks in the western U.S. Over time, identified periods of extraordinary volatility will recede and will be replaced with the Company’s actual historical volatility. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the date of grant for periods corresponding with the expected lives of the options granted. The expected option lives represent the period of time that options are expected to be outstanding, giving consideration to vesting schedules and historical exercise and forfeiture patterns.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of publicly-traded options that have no vesting restrictions and are fully transferable.  The Black-Scholes model is affected by subjective assumptions, including historical volatility of the Company’s common stock price.  

The following table presents the activity related to stock options for the nine months ended September 30, 2016 and 2015:

	Options		Weighted- average exercise price		Weighted- average remaining contractual term (years)	Aggregate intrinsic value (000)
Options outstanding at January 1, 2016	3,375,909		$	5.44	9.0	$	4,243.7
Granted	14,222		3.71		8.4	29.9
Canceled / forfeited	(234	)	78.08		N/A	N/A
Exercised	(1,449	)	3.61		N/A	N/A
Expired	(1,697	)	209.87		N/A	N/A
Options outstanding at September 30, 2016	3,386,751		$	5.33	8.3	$	4,240.0
Options exercisable at September 30, 2016	86,751		$	25.78	4.7	$	49.0
Options outstanding at January 1, 2015	85,901		$	34.86	5.7	$	—
Granted	3,300,000		4.79		9.3	2,046.0
Canceled / forfeited	(8,011	)	19.52		N/A	N/A
Expired	(1,691	)	$	151.20	N/A	N/A
Options outstanding at September 30, 2015	3,376,199		$	5.45	9.2	$	2,046.0
Options exercisable at September 30, 2015	63,212		39.72		4.5	$	—

Stock-based compensation expense related to stock options for the nine months ended September 30, 2016 and 2015 was $0.8 million and $0.7 million, respectively. As of September 30, 2016, there was approximately $3.6 million of unrecognized compensation cost related to non-vested stock options that will be recognized over the remaining vesting periods of the stock options.

The following table presents the activity related to non-vested restricted stock for the nine months endedSeptember 30, 2016:

	Number of shares		Weighted- average grant date fair value per share
Non-vested as of January 1, 2016	909,410		$	6.37
Granted	678,051		5.69
Vested	(333,688	)	5.24
Canceled / forfeited	(42,317	)	4.94
Non-vested as of September 30, 2016	1,211,456		$	6.35

Non-vested restricted stock is scheduled to vest over a three to five year period. The unearned compensation on restricted stock is being amortized to expense on a straight-line basis over the estimated applicable service or vesting periods. As of September 30, 2016, unrecognized compensation cost related to non-vested restricted stock totaled approximately $5.5 million, which is expected to be recognized over the next five years. Total expense recognized by the Company for non-vested restricted stock for the nine months endedSeptember 30, 2016 and 2015 was $1.5 million and $1.0 million, respectively. There was $0.3 million unrecognized compensation cost related to restricted stock units (“RSUs”) at September 30, 2016 and no unrecognized compensation cost related to RSUs at December 31, 2015.

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Interest Rate Swap Derivatives

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swap Derivatives

Interest Rate Swap Derivatives

Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require no net investment and allow for the net settlement of positions. The notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. The underlying variable represents a specified interest rate, index, or other component. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the market value of the derivative contract. The Company obtains dealer quotation to value its derivative contracts.

The Company periodically enters into certain commercial loan interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rates. Under these agreements, the Company provides the customer with a variable rate loan and enters into an interest rate swap in which the customer receives a variable rate payment in exchange for a fixed rate payment. The Company offsets its risk exposure by entering into an offsetting interest rate swap with a dealer counterparty for the same notional amount and length of term as the customer interest rate swap providing the dealer counterparty with a fixed rate payment in exchange for a variable rate payment. Generally, these instruments help the Company manage exposure to market risk and meet customer financing needs. Market risk represents the possibility that economic value or net interest income will be adversely affected by fluctuations in external factors such as market-driven interest rates and prices or other economic factors.

The Company is exposed to credit-related losses in the event of non-performance by the counterparty to these agreements. Credit risk of the financial contract is controlled through the credit approval, limits, and monitoring procedures and management does not expect the counterparties to fail their obligations.

In connection with the interest rate swaps between the Company and the dealer counterparties, the agreements contain a provision that if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations. Similarly, the Company could be required to settle its obligations under certain of its agreements if certain credit ratings fall below specified standards or if specific regulatory events occur, such as a publicly issued memorandum of understanding, cease and desist order, or a termination of insurance coverage by the FDIC.

As of September 30, 2016 and December 31, 2015, the notional values or contractual amounts and fair values of the Company’s derivatives not designated in hedge relationships were as follows (dollars in thousands):

	Asset Derivatives								Liability Derivatives
	September 30, 2016				December 31, 2015				September 30, 2016				December 31, 2015
	Notional/ Contract Amount		Fair Value (1)		Notional/ Contract Amount		Fair Value (1)		Notional/ Contract Amount		Fair Value (2)		Notional/ Contract Amount		Fair Value (2)
Interest rate swaps	$	194,485	$	18,097	$	169,720	$	8,646	$	194,485	$	18,097	$	169,720	$	8,646
(1) Included in Other Assets on the condensed consolidated balance sheet.
(2) Included in Other Liabilities on the condensed consolidated balance sheet.

Swap fee income, as included in non-interest income, was $0.7 million and $1.8 million for the three and nine months ended September 30, 2016, respectively, and $0.6 million and $1.9 million for the three and nine months ended September 30, 2015, respectively.

The Company generally posts collateral against derivative liabilities in the form of cash. Collateral posted against derivative liabilities was $19.5 million and $8.6 million as of September 30, 2016 and December 31, 2015, respectively.

Derivative assets and liabilities are recorded at fair value on the balance sheet and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis and to offset net derivative position with related collateral where applicable.

The following table illustrates the potential effect of the Company’s derivative master netting arrangements, by type of financial instrument, on the Company’s condensed consolidated balance sheet as of September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
							Gross Amounts of Financial Instruments Not Offset in the Balance Sheet
	Gross Amounts Recognized		Amounts offset in the Balance Sheet		Net Amounts in the Balance Sheet		Netting Adjustment Per Applicable Master Netting Agreements		Fair Value of Financial Collateral in the Balance Sheet		Net Amount
Asset Derivatives
Interest rate swaps	$	18,097	$	—	$	18,097	$	—	$	—	$	18,097
Liability Derivatives
Interest rate swaps	$	18,097	$	—	$	18,097	$	—	$	19,525	$	(1,428	)
	December 31, 2015
							Gross Amounts of Financial Instruments Not Offset in the Balance Sheet
	Gross Amounts Recognized		Amounts offset in the Balance Sheet		Net Amounts in the Balance Sheet		Netting Adjustment Per Applicable Master Netting Agreements		Fair Value of Financial Collateral in the Balance Sheet		Net Amount
Asset Derivatives
Interest rate swaps	$	8,646	$	—	$	8,646	$	—	$	—	$	8,646
Liability Derivatives
Interest rate swaps	$	8,646	$	—	$	8,646	$	—	$	8,595	$	51

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

In assessing the realizability of deferred tax assets (“DTA”), management considers whether it is more likely than not that some portion or all of the DTA will or will not be realized. The Company’s ultimate realization of the DTA is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables.

During the three and nine months ended September 30, 2016, the Company recorded a $2.4 million and $6.4 million income tax provision, respectively. During the three and nine months ended September 30, 2015, the Company recorded a $2.6 million and $8.6 million income tax provision, respectively. As of September 30, 2016, the net DTA was $46.2 million compared with a net DTA of $50.7 million as of December 31, 2015. During the third quarter and first nine months of 2016 and 2015, the Company’s current taxes consisted of federal and state alternative minimum taxes and other state minimum taxes. The Company’s estimated effective income tax rate differs from the statutory income tax rate primarily due to the exclusion of certain BOLI and municipal bond interest income from taxable income. 

There are a number of tax issues that impact the deferred tax asset balance, including changes in temporary differences between the financial statement recognition of revenue and expenses, estimates as to the deductibility of prior losses and potential consequence of Section 382 of the Internal Revenue Code. See also “Critical Accounting Policies and Accounting Estimates - Deferred Income Taxes” included in Part II, Item 7 of the 2015 Annual Report.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

GAAP establishes a hierarchy for determining fair value measurements that includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

• Level 1: Inputs that are quoted unadjusted prices in active markets - that the Company has the ability to access at the measurement date - for identical assets or liabilities.

• Level 2: Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs derived principally from, or corroborated by, observable market data by correlation or other means.

• Level 3: Inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s assets and liabilities carried at fair value. Where available, fair value is based upon quoted market prices. Significant balances of the Bank’s financial assets and liabilities do not have quoted market prices. In such circumstances, fair value is based upon internal or third party models that primarily use, as inputs, observable market-based parameters, such as yields and discount rates of comparable instruments of like duration or credit quality. Valuation adjustments may be made to model results with respect to various assets or liabilities. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes that the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain assets and liabilities could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the condensed consolidated balance sheet date may differ significantly from the amounts presented herein.

The following is a description of the valuation methodologies used for assets measured at fair value on a recurring or nonrecurring basis, as well as the general classification of such assets pursuant to valuation hierarchy:

Investment securities available-for-sale: Where quoted prices for identical assets are available in an active market, investment securities available-for-sale are classified within level 1 of the hierarchy. If quoted market prices for identical securities are not available, then fair values are estimated by independent sources using pricing models and/or quoted prices of investment securities with similar characteristics or discounted cash flows. The Company has categorized its investment securities available-for-sale as level 2, since a majority of such securities are MBS which are mainly priced in this latter manner.

Interest rate swap derivatives: The fair value of the interest rate lock commitments and forward sales commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The fair value of the interest rate swaps is determined using a discounted cash flow technique with values provided by third party swap dealers or consultants. The Company has determined that the majority of the inputs used to value its interest rate swap derivatives fall within Level 2.

Impaired loans: In accordance with GAAP, loans are measured for impairment using one of three methods: an observable market price (if available), the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the fair value of the loan’s collateral (if collateral dependent). Estimated fair value of the loan’s collateral is determined by appraisals or independent valuations which are then adjusted for the estimated costs related to liquidation of the collateral. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to valuation based upon more recent market sales activity or more current appraisal information derived from properties of similar type and/or locale. A significant portion of the Bank’s impaired loans are measured using the estimated fair market value of the collateral less the estimated costs to sell. The Company has categorized all its loans impaired during the calendar year utilizing fair value metrics as level 3. Loans that were impaired during the calendar year based on the present value of expected future cash flows discounted at the loans’ effective interest rates are not included in the table below as the loans’ effective interest rates are not based on current market rates.

OREO: The Company’s OREO is measured at estimated fair value less estimated costs to sell. Fair value is generally determined based on third-party appraisals of fair value in an orderly sale. Historically, appraisals have considered comparable sales of like assets in reaching a conclusion as to fair value. Since many recent real estate sales could be termed “distressed sales”, and since a preponderance have been short-sale or foreclosure related, this has directly impacted appraisal valuation estimates. Estimated costs to sell OREO are based on standard market factors. The valuation of OREO is subject to significant external and internal judgment. Management periodically reviews OREO to determine whether the property continues to be carried at the lower of its recorded book value or estimated fair value, net of estimated costs to sell. The Company has categorized its OREO as level 3.

The Company’s only financial assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015 were as follows (dollars in thousands):

	Level 1		Level 2		Level 3
September 30, 2016
Assets:
Investment securities available-for-sale	$	—	$	523,275	$	—
Interest rate swap derivatives	—		18,097		—
Total assets	$	—	$	541,372	$	—
Liabilities:
Interest rate swap derivatives	$	—	$	18,097	$	—
December 31, 2015
Assets:
Investment securities available-for-sale	$	—	$	310,262	$	—
Interest rate swap derivatives	—		8,646		—
Total assets	$	—	$	318,908	$	—
Liabilities:
Interest rate swap derivatives	—		8,646		—

Certain assets are measured at fair value on a nonrecurring basis (e.g., the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments when there is evidence of impairment). The following table represents the assets measured at fair value on a nonrecurring basis by the Company at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Level 1		Level 2		Level 3
September 30, 2016
Impaired loans	$	—	$	—	$	85
Other real estate owned	—		—		1,677
	$	—	$	—	$	1,762
December 31, 2015
Impaired loans	$	—	$	—	$	50
Other real estate owned	—		—		3,274
	$	—	$	—	$	3,324

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	85	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	1,677	Market approach	Appraised value less selling costs of 5% to 10%
	December 31, 2015
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	50	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	3,274	Market approach	Appraised value less selling costs of 5% to 10%

The Company did not change the methodology used to determine fair value for any assets or liabilities during the nine months ended September 30, 2016 or during 2015. In addition, for any given class of assets, the Company did not have any transfers between level 1, level 2, or level 3 during the nine months ended September 30, 2016 or during 2015.

The following disclosures are made in accordance with the provisions of GAAP, which requires the disclosure of fair value information about financial instruments where it is practicable to estimate that value.

In cases where quoted market values are not available, the Company primarily uses present value techniques to estimate the fair value of its financial instruments. Valuation methods require considerable judgment, and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Accordingly, the estimates provided herein do not necessarily indicate amounts which could be realized in a current market exchange.

In addition, as the Company normally intends to hold the majority of its financial instruments until maturity, it does not expect to realize many of the estimated amounts disclosed. The disclosures also do not include estimated fair value amounts for items which are not defined as financial instruments but which may have significant value. The Company does not believe that it would be practicable to estimate a representational fair value for these types of items as of September 30, 2016 and December 31, 2015.

Because GAAP excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements, any aggregation of the fair value amounts presented would not represent the underlying value of the Company.

The Company uses the following methods and assumptions to estimate the fair value of its financial instruments:

Cash and cash equivalents:  The carrying amount approximates the estimated fair value of these instruments.

Investment securities: See above description.

FHLB stock:  The carrying amount approximates the estimated fair value of this investment.

Loans:  The estimated fair value of non-impaired loans is calculated by discounting the contractual cash flows of the loans using September 30, 2016 and December 31, 2015 origination rates. The resulting amounts are adjusted to estimate the effect of changes in the credit quality of borrowers since the loans were originated. Estimated fair values for impaired loans are determined using an observable market price (if available) or the fair value of the loan’s collateral (if collateral dependent) as described above. Observable market prices for community bank loans are not generally available given the non-homogenous characteristics of such loans.

BOLI: The carrying amount of both the separate and general account BOLI approximates the estimated fair value of these instruments. Fair values of insurance policies owned are based on the insurance contracts’ cash surrender values.

MSRs: The estimated fair value of MSRs is calculated by discounting the expected future contractual cash flows. Factors considered in the estimated fair value calculation include prepayment speed forecasts, market discount rates, earning rates, servicing costs, acquisition costs, ancillary income, and borrower rates.

Deposits:  The estimated fair value of demand deposits, consisting of checking, interest bearing demand, and savings deposit accounts, is represented by the amounts payable on demand. At the reporting date, the estimated fair value of time deposits is calculated by discounting the scheduled cash flows using the September 30, 2016 and December 31, 2015 rates offered on those instruments.

Other borrowings: The fair value of other borrowings (including federal funds purchased, if any) is estimated using discounted cash flow analysis based on the Bank’s September 30, 2016 and December 31, 2015 incremental borrowing rates for similar types of borrowing arrangements.

Loan commitments and standby letters of credit: The majority of the Bank’s commitments to extend credit have variable interest rates and “escape” clauses if the customer’s credit quality deteriorates. Therefore, the fair values of these items are not significant and are not included in the following table.

The estimated fair values of the Company’s significant on-balance sheet financial instruments at September 30, 2016 and December 31, 2015 were approximately as follows (dollars in thousands):

		September 30, 2016				December 31, 2015
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	152,360	$	152,360	$	77,805	$	77,805
Investment securities:
Available-for-sale	Level 2	523,275		523,275		310,262		310,262
Held-to-maturity	Level 2	141,326		148,213		139,424		142,260
FHLB stock	Level 2	3,270		3,270		3,000		3,000
Loans held-for-sale	Level 2	9,478		9,478		3,621		3,621
Loans, net	Level 3	2,034,353		2,043,932		1,662,095		1,656,986
BOLI	Level 3	56,708		56,708		54,450		54,450
MSRs	Level 3	2,246		2,686		2,186		3,027
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646
Financial liabilities:
Deposits	Level 2	2,745,081		2,744,387		2,083,088		2,082,748
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646

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Regulatory Matters

9 Months Ended

Sep. 30, 2016

Regulated Operations [Abstract]

Regulatory Matters

Regulatory Matters

Bancorp and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Bancorp and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Bancorp’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to provide for capital adequacy require Bancorp and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Tier 1 capital to average assets, common equity Tier 1 capital to risk-weighted assets (“CET1”), and Tier 1 and total capital to risk-weighted assets (all as defined in the regulations).

Federal banking regulators are required to take prompt corrective action if an insured depository institution fails to satisfy certain minimum capital requirements. Such actions could potentially include a leverage capital limit, a risk-based capital requirement, and any other measure of capital deemed appropriate by the federal banking regulator for measuring the capital adequacy of an insured depository institution. In addition, payment of dividends by Bancorp and the Bank are subject to restriction by state and federal regulators and availability of retained earnings.

In July 2013, the Board of Governors of the Federal Reserve System and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III”). Under the final rules, which became effective for the Bancorp and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements increased for both the quantity and quality of capital held by the Bancorp and the Bank. The rules include a CET1ratio of 4.5% and a capital conservation buffer of 2.5% above the regulatory minimum risk-based capital requirements, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. Basel III also (i) raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), (ii) effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and (iii) requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures.

Bancorp’s and Bank’s actual capital amounts and ratios and the required capital ratios under the prompt corrective action framework as of September 30, 2016 and December 31, 2015 are presented in the following table (dollars in thousands): 

	Actual				Regulatory minimum to be “adequately capitalized”				Basel III Minimum Capital Adequacy with Capital Conservation Buffer		Regulatory minimum to be “well capitalized”
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount	Ratio	Capital Amount		Ratio
September 30, 2016
Tier 1 leverage (to average assets)
Bancorp	$	249,431	8.4	%	$	119,171	4.0	%	N/A	N/A	$	148,964	5.0	%
Bank	245,681		8.3	%	119,062		4.0	%	N/A	N/A	148,828		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	249,431		10.4		108,234		4.5		122,665	5.1	156,338		6.5
Bank	245,681		10.2		108,242		4.5		122,674	5.1	156,349		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	249,431		10.4		144,312		6.0		158,743	6.6	192,416		8.0
Bank	245,681		10.2		144,322		6.0		158,755	6.6	192,430		8.0
Total capital (to risk-weighted assets)
Bancorp	275,112		11.4		192,416		8.0		206,847	8.6	240,520		10.0
Bank	271,362		11.3		192,430		8.0		206,862	8.6	240,537		10.0
December 31, 2015
Tier 1 leverage (to average assets)
Bancorp	$	227,542	9.4	%	$	96,817	4.0	%	N/A	N/A	$	121,022	5.0	%
Bank	223,533		9.3	%	96,662		4.0	%	N/A	N/A	120,827		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	227,542		11.5		88,818		4.5		N/A	N/A	128,292		6.5
Bank	223,533		11.4		88,663		4.5		N/A	N/A	128,069		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	227,542		11.5		118,424		6.0		N/A	N/A	157,898		8.0
Bank	223,533		11.4		118,218		6.0		N/A	N/A	157,624		8.0
Total capital (to risk-weighted assets)
Bancorp	252,401		12.8		157,898		8.0		N/A	N/A	197,373		10.0
Bank	248,346		12.6		157,624		8.0		N/A	N/A	197,030		10.0

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business.  While the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.

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New Authoritative Accounting Guidance

9 Months Ended

Sep. 30, 2016

Accounting Changes and Error Corrections [Abstract]

New Authoritative Accounting Guidance

New Authoritative Accounting Guidance

In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (“ASU 2016-15”). ASU 2016-15 addresses the classification of debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of Corporate-Owned Life Insurance policies, including Bank-Owned Life Insurance policies, distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (“ASU 2016-13”). ASU 2016-13 requires financial assets that are measured at amortized cost to be presented as the net amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets and for the expected increase or decrease of expected credit losses. ASU 2016-13 notes that credit losses related to available-for-sale debt securities should be recorded through an allowance for credit losses. The initial allowance for credit losses, for purchased available-for-sale securities, is added to the purchase price rather than reported as a credit loss expense. Subsequent changes in the allowance are recorded as credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount attributed to the assessment of credit loss at acquisition. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 describes simplifications related to accounting and presenting share-based payment awards. ASU 2016-09 states that excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit in the income statement; excess tax benefits should be classified with other income tax as an operating activity on the statement of cash flows; an entity may make an entity-wide accounting policy to either estimate the number of awards that are expected to vest or account for forfeitures as they occur; and cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Adoption of ASU 2016-09 is not expected to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 simplifies the impairment assessment of equity investments, clarifies reporting disclosure requirements for financial instruments measured at amortized cost, and requires the exit price notion be disclosed when measuring fair value of financial instruments. ASU 2016-01 details the required separate presentation in other comprehensive income for the change in fair value of a liability related to change in instrument specific credit risk and details the required separate presentation of financial assets and liabilities by measurement category, and clarifies the need for a valuation allowance on deferred tax assets related to available-for-sale securities. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. Adoption of ASU 2016-01 is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest- Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs and requires that the debt issuance costs related to a recognized debt liability be presented in the balance sheet as direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in this update. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Adoption of ASU 2015-03 is not expected to have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016 with three transition methods available - full retrospective, retrospective and cumulative effect approach. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date” (“ASU 2015-14”). ASU 2015-14 amended the effective date to December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal Versus Agent Considerations” (“ASU 2016-08”). ASU 2016-08 defines the roles of a principal and agent in revenue recognition and determines when control of the good or service is transferred to the customer. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (“ASU 2016-10”). ASU 2016-10 establishes guidance on identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers: Narrow- Scope Improvements and Practical Expedients" (“ASU 2016-12”). ASU 2016-12 clarifies the objective of the collectability criteria and notes the differences in applying the update at transition and on an ongoing basis. Adoption of ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, and ASU 2016-12 is not expected to have a material effect on our consolidated financial statements.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fair Value Measurements

Fair Value Measurements

GAAP establishes a hierarchy for determining fair value measurements that includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

• Level 1: Inputs that are quoted unadjusted prices in active markets - that the Company has the ability to access at the measurement date - for identical assets or liabilities.

• Level 2: Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs derived principally from, or corroborated by, observable market data by correlation or other means.

• Level 3: Inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s assets and liabilities carried at fair value. Where available, fair value is based upon quoted market prices. Significant balances of the Bank’s financial assets and liabilities do not have quoted market prices. In such circumstances, fair value is based upon internal or third party models that primarily use, as inputs, observable market-based parameters, such as yields and discount rates of comparable instruments of like duration or credit quality. Valuation adjustments may be made to model results with respect to various assets or liabilities. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes that the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain assets and liabilities could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and, therefore, estimates of fair value after the condensed consolidated balance sheet date may differ significantly from the amounts presented herein.

The following is a description of the valuation methodologies used for assets measured at fair value on a recurring or nonrecurring basis, as well as the general classification of such assets pursuant to valuation hierarchy:

Investment securities available-for-sale: Where quoted prices for identical assets are available in an active market, investment securities available-for-sale are classified within level 1 of the hierarchy. If quoted market prices for identical securities are not available, then fair values are estimated by independent sources using pricing models and/or quoted prices of investment securities with similar characteristics or discounted cash flows. The Company has categorized its investment securities available-for-sale as level 2, since a majority of such securities are MBS which are mainly priced in this latter manner.

Interest rate swap derivatives: The fair value of the interest rate lock commitments and forward sales commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The fair value of the interest rate swaps is determined using a discounted cash flow technique with values provided by third party swap dealers or consultants. The Company has determined that the majority of the inputs used to value its interest rate swap derivatives fall within Level 2.

Impaired loans: In accordance with GAAP, loans are measured for impairment using one of three methods: an observable market price (if available), the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the fair value of the loan’s collateral (if collateral dependent). Estimated fair value of the loan’s collateral is determined by appraisals or independent valuations which are then adjusted for the estimated costs related to liquidation of the collateral. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to valuation based upon more recent market sales activity or more current appraisal information derived from properties of similar type and/or locale. A significant portion of the Bank’s impaired loans are measured using the estimated fair market value of the collateral less the estimated costs to sell. The Company has categorized all its loans impaired during the calendar year utilizing fair value metrics as level 3. Loans that were impaired during the calendar year based on the present value of expected future cash flows discounted at the loans’ effective interest rates are not included in the table below as the loans’ effective interest rates are not based on current market rates.

OREO: The Company’s OREO is measured at estimated fair value less estimated costs to sell. Fair value is generally determined based on third-party appraisals of fair value in an orderly sale. Historically, appraisals have considered comparable sales of like assets in reaching a conclusion as to fair value. Since many recent real estate sales could be termed “distressed sales”, and since a preponderance have been short-sale or foreclosure related, this has directly impacted appraisal valuation estimates. Estimated costs to sell OREO are based on standard market factors. The valuation of OREO is subject to significant external and internal judgment. Management periodically reviews OREO to determine whether the property continues to be carried at the lower of its recorded book value or estimated fair value, net of estimated costs to sell. The Company has categorized its OREO as level 3.

The Company uses the following methods and assumptions to estimate the fair value of its financial instruments:

Cash and cash equivalents:  The carrying amount approximates the estimated fair value of these instruments.

Investment securities: See above description.

FHLB stock:  The carrying amount approximates the estimated fair value of this investment.

Loans:  The estimated fair value of non-impaired loans is calculated by discounting the contractual cash flows of the loans using September 30, 2016 and December 31, 2015 origination rates. The resulting amounts are adjusted to estimate the effect of changes in the credit quality of borrowers since the loans were originated. Estimated fair values for impaired loans are determined using an observable market price (if available) or the fair value of the loan’s collateral (if collateral dependent) as described above. Observable market prices for community bank loans are not generally available given the non-homogenous characteristics of such loans.

BOLI: The carrying amount of both the separate and general account BOLI approximates the estimated fair value of these instruments. Fair values of insurance policies owned are based on the insurance contracts’ cash surrender values.

MSRs: The estimated fair value of MSRs is calculated by discounting the expected future contractual cash flows. Factors considered in the estimated fair value calculation include prepayment speed forecasts, market discount rates, earning rates, servicing costs, acquisition costs, ancillary income, and borrower rates.

Deposits:  The estimated fair value of demand deposits, consisting of checking, interest bearing demand, and savings deposit accounts, is represented by the amounts payable on demand. At the reporting date, the estimated fair value of time deposits is calculated by discounting the scheduled cash flows using the September 30, 2016 and December 31, 2015 rates offered on those instruments.

Other borrowings: The fair value of other borrowings (including federal funds purchased, if any) is estimated using discounted cash flow analysis based on the Bank’s September 30, 2016 and December 31, 2015 incremental borrowing rates for similar types of borrowing arrangements.

Loan commitments and standby letters of credit: The majority of the Bank’s commitments to extend credit have variable interest rates and “escape” clauses if the customer’s credit quality deteriorates. Therefore, the fair values of these items are not significant and are not included in the following table.

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New Authoritative Accounting Guidance (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Changes and Error Corrections [Abstract]

New Authoritative Accounting Guidance

New Authoritative Accounting Guidance

In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" (“ASU 2016-15”). ASU 2016-15 addresses the classification of debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of Corporate-Owned Life Insurance policies, including Bank-Owned Life Insurance policies, distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (“ASU 2016-13”). ASU 2016-13 requires financial assets that are measured at amortized cost to be presented as the net amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets and for the expected increase or decrease of expected credit losses. ASU 2016-13 notes that credit losses related to available-for-sale debt securities should be recorded through an allowance for credit losses. The initial allowance for credit losses, for purchased available-for-sale securities, is added to the purchase price rather than reported as a credit loss expense. Subsequent changes in the allowance are recorded as credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount attributed to the assessment of credit loss at acquisition. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 describes simplifications related to accounting and presenting share-based payment awards. ASU 2016-09 states that excess tax benefits and tax deficiencies are to be recognized as income tax expense or benefit in the income statement; excess tax benefits should be classified with other income tax as an operating activity on the statement of cash flows; an entity may make an entity-wide accounting policy to either estimate the number of awards that are expected to vest or account for forfeitures as they occur; and cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Adoption of ASU 2016-09 is not expected to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments- Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 simplifies the impairment assessment of equity investments, clarifies reporting disclosure requirements for financial instruments measured at amortized cost, and requires the exit price notion be disclosed when measuring fair value of financial instruments. ASU 2016-01 details the required separate presentation in other comprehensive income for the change in fair value of a liability related to change in instrument specific credit risk and details the required separate presentation of financial assets and liabilities by measurement category, and clarifies the need for a valuation allowance on deferred tax assets related to available-for-sale securities. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. Adoption of ASU 2016-01 is not expected to have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest- Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs and requires that the debt issuance costs related to a recognized debt liability be presented in the balance sheet as direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in this update. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Adoption of ASU 2015-03 is not expected to have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016 with three transition methods available - full retrospective, retrospective and cumulative effect approach. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date” (“ASU 2015-14”). ASU 2015-14 amended the effective date to December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal Versus Agent Considerations” (“ASU 2016-08”). ASU 2016-08 defines the roles of a principal and agent in revenue recognition and determines when control of the good or service is transferred to the customer. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (“ASU 2016-10”). ASU 2016-10 establishes guidance on identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers: Narrow- Scope Improvements and Practical Expedients" (“ASU 2016-12”). ASU 2016-12 clarifies the objective of the collectability criteria and notes the differences in applying the update at transition and on an ongoing basis. Adoption of ASU 2014-09, ASU 2015-14, ASU 2016-08, ASU 2016-10, and ASU 2016-12 is not expected to have a material effect on our consolidated financial statements.

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table provides a summary of the purchase price calculation as of the PPFS Acquisition Date and the identifiable assets purchased and the liabilities assumed at their estimated fair values. These fair value measurements are provisional based on third-party valuations that are currently under review and are subject to refinement for up to one year after the PPFS Acquisition Date based on additional information that may be obtained by us that existed as of the PPFS Acquisition Date.

Purchase Price (in thousands), except per share data
Cascade shares issued for PPFS shares			2,921,012
Cascade share price			$	5.56
Consideration from common stock conversion (0.3050 ratio)			$	16,238
Cash paid in lieu of fractional shares			$	1
Total purchase price			16,239
Assets
Cash and cash equivalents	$	7,625
FHLB stock	424
Loans, net	102,837
Premises and equipment	6,302
Deferred tax asset	2,156
Bank owned life insurance	1,491
Other assets	2,364
Total assets	$	123,199
Liabilities
Deposits	$	101,544
Other liabilities	7,939
Total liabilities	$	109,483
Net identifiable assets acquired			13,716
Intangible asset acquired (1)			342
Goodwill			$	2,181
(1) Intangible assets consist of core deposit intangibles. The useful life for which the core deposit intangible is being amortized is 10 years.

The following is a condensed balance sheet disclosing the estimated fair value amounts of the branches acquired in the branch acquisition assigned to the major consolidated asset and liability captions at the acquisition date (dollars in thousands):

ASSETS
Cash and cash equivalents	$	456,611
Premises and equipment, net	3,113
Core deposit intangibles	6,427
Goodwill	3,984
Other assets	463
Total assets	$	470,598
LIABILITIES
Deposits	$	469,889
Other liabilities	709
Total liabilities	$	470,598

Business Acquisition, Pro Forma Information [Table Text Block]

	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Net interest income	24,379	21,775	71,547	62,815
Non-interest expense	24,243	20,487	73,843	63,742
Net income	5,151	5,314	12,846	13,704
Net income per diluted share	0.07	0.07	0.17	0.18

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments

The following table presents investment securities at September 30, 2016 and December 31, 2015, showing that available-for-sale and held-to-maturity securities increased from December 31, 2015 primarily due to redeployment of cash assumed in the branch acquisition into securities (dollars in thousands):

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
September 30, 2016
Available-for-sale
U.S. Agency mortgage-backed securities (MBS)	$	168,862	$	2,715	$	(81	)	$	171,496
Non-agency MBS	269,508		1,540		(296		)	270,752
U.S. Agency asset-backed securities	6,876		605		(52		)	7,429
Corporate securities	72,695		382		(30		)	73,047
Mutual fund	534		17		—			551
	$	518,475	$	5,259	$	(459	)	$	523,275
Held-to-maturity
U.S. Agency MBS	$	102,226	$	4,816	$	(2	)	$	107,040
Obligations of state and political subdivisions	38,810		2,073		—			40,883
Tax credit investments	290		—		—			290
	$	141,326	$	6,889	$	(2	)	$	148,213
December 31, 2015
Available-for-sale
U.S. Agency MBS	$	154,691	$	2,698	$	(455	)	$	156,934
Non-agency MBS	118,765		477		(1,016		)	118,226
U.S. Agency asset-backed securities	7,468		800		(23		)	8,245
Corporate securities	26,199		121		—			26,320
Mutual fund	525		12		—			537
	$	307,648	$	4,108	$	(1,494	)	$	310,262
Held-to-maturity
U.S. Agency MBS	$	98,800	$	1,875	$	(5	)	$	100,670
Obligations of state and political subdivisions	421		—		—			421
Tax credit investments	40,203		968		(2		)	41,169
	$	139,424	$	2,843	$	(7	)	$	142,260

Investments Classified by Contractual Maturity Date

The following table presents the contractual maturities of investment securities at September 30, 2016 (dollars in thousands):

	Available-for-sale				Held-to-maturity
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
Due in one year or less	$	10,397	$	10,427	$	—	$	—
Due after one year through five years	68,008		68,389		30,431		31,165
Due after five years through ten years	40,715		41,060		90,472		95,870
Due after ten years	398,821		402,848		20,133		20,888
Mutual fund	534		551		—		—
Tax credit investments	—		—		290		290
	$	518,475	$	523,275	$	141,326	$	148,213

Available For Sale Securities Continuous Unrealized Loss Position Fair Value

The following table presents the fair value and gross unrealized losses of the Bank’s investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Less than 12 months					12 months or more					Total
	Estimated  fair value		Unrealized losses			Estimated  fair value		Unrealized losses			Estimated  fair value		Unrealized losses
September 30, 2016
Available-for-sale
U.S. Agency MBS	$	33,576	$	(78	)	$	232	$	(3	)	$	33,808	$	(81	)
Non-Agency MBS	56,692		(296		)	—		—			56,692		(296		)
U.S. Agency asset-backed securities	1,929		(52		)	—		—			1,929		(52		)
Corporate Securities	13,430		(30		)	—		—			13,430		(30		)
	$	105,627	$	(456	)	$	232	$	(3	)	$	105,859	$	(459	)
Held-to-maturity
U.S. Agency MBS	$	1,882	$	(2	)	$	—	$	—		$	1,882	$	(2	)
Obligations of state and political subdivisions	708		—			—		—			708		—
	$	2,590	$	(2	)	$	—	$	—		$	2,590	$	(2	)
December 31, 2015
Available-for-sale
U.S. Agency MBS	$	23,630	$	(123	)	$	34,576	$	(332	)	$	58,206	$	(455	)
Non-Agency MBS	66,412		(765		)	12,225		(251		)	78,637		(1,016		)
U.S. Agency asset-backed securities	—		—			1,521		(23		)	1,521		(23		)
	$	90,042	$	(888	)	$	48,322	$	(606	)	$	138,364	$	(1,494	)
Held-to-maturity
U.S. Agency MBS	2,063		(5		)	—		—			$	2,063	$	(5	)
Obligations of state and political subdivisions	725		(2		)	—		—			725		(2		)
	$	2,788	$	(7	)	$	—	$	—		$	2,788	$	(7	)

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Loans and reserve for credit losses (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The composition of the loan portfolio at September 30, 2016 and December 31, 2015 was as follows (dollars in thousands):

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
Originated loans (a):
Commercial real estate:
Owner occupied	$	280,901		15.8	%	$	263,095		18.1	%
Non-owner occupied	486,689			27.6	%	431,379			29.7	%
Total commercial real estate loans	767,590			43.4	%	694,474			47.8	%
Construction	168,558			9.6	%	119,723			8.2	%
Residential real estate	406,374			23.1	%	237,084			16.3	%
Commercial and industrial	378,700			21.5	%	363,335			25.0	%
Consumer	41,502			2.4	%	38,362			2.7	%
Total loans	1,762,724			100.0	%	1,452,978			100.0	%
Less:
Deferred loan fees	(1,917		)			(1,419		)
Reserve for loan losses	(25,238		)			(24,415		)
Loans, net	$	1,735,569				$	1,427,144
Acquired loans (b):
Commercial real estate:
Owner occupied	$	95,102		31.8	%	$	45,236		19.3	%
Non-owner occupied	102,088			34.2	%	95,183			40.5	%
Total commercial real estate loans	197,190			66.0	%	140,419			59.8	%
Construction	14,423			4.8	%	10,629			4.5	%
Residential real estate	59,092			19.8	%	61,306			26.1	%
Commercial and industrial	26,569			8.9	%	21,109			9.0	%
Consumer	1,510			0.5	%	1,488			0.6	%
Total loans	$	298,784		100.0	%	$	234,951		100.0	%
Total loans:
Commercial real estate:
Owner occupied	$	376,003		18.1	%	$	308,331		18.3	%
Non-owner occupied	588,777			28.6	%	526,562			31.2	%

Total commercial real estate loans	964,780			46.7	%	834,893			49.5	%
Construction	182,981			8.9	%	130,352			7.7	%
Residential real estate	465,466			22.6	%	298,390			17.7	%
Commercial and industrial	405,269			19.7	%	384,444			22.8	%
Consumer	43,012			2.1	%	39,850			2.3	%
Total loans	2,061,508			100.0	%	1,687,929			100.0	%
Less:
Deferred loan fees	(1,917		)			(1,419		)
Reserve for loan losses	(25,238		)			(24,415		)
Loans, net	$	2,034,353				$	1,662,095
(a) Loans organically made through the Company’s normal and customary origination process, including adjustable rate mortgage (“ARM”) purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

Changes in Loss Share Payable Associated with Covered Loans

Changes in the loss share payable associated with covered loans for the three and nine months ended September 30, 2016 were as follows (dollars in thousands):

	Three months ended			Nine months ended
	September 30, 2016
Balance at beginning of period	$	201		$	289
Paid to FDIC	(201		)	(857		)
Increase due to impairment	—			(53		)
FDIC reimbursement	396			1,077
Shared loss expenses	(28		)	(92		)
Adjustments from prior periods	—			4
Balance at end of period	$	368		$	368

Allowance for Credit Losses on Financing Receivables

Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the three and nine months ended September 30, 2016 and 2015 were as follows (dollars in thousands):

	Commercial real estate		Construction		Residential real estate		Commercial  and  industrial			Consumer			Unallocated			Total
For the three months ended September 30, 2016
Allowance for Loan Losses
Balance at June 30, 2016	$	4,391	$	1,259	$	2,674	$	11,982		$	978		$	3,382		$	24,666
Loan loss provision (credit)	1,554		271		1,044		(1,766		)	441			(1,544		)	—
Recoveries	74		327		45		428			208			—			1,082
Loans charged off	—		—		—		(95		)	(415		)	—			(510		)
Balance at end of period	$	6,019	$	1,857	$	3,763	$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments
Balance at June 30, 2016	$	48	$	268	$	25	$	75		$	24		$	—		$	440
Provision for unfunded loan commitments	—		—		—		—			—			—			—
Balance at end of period	$	48	$	268	$	25	$	75		$	24		$	—		$	440
Reserve for credit losses
Reserve for loan losses	$	6,019	$	1,857	$	3,763	$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments	48		268		25		75			24			—			440
Total reserve for credit losses	$	6,067	$	2,125	$	3,788	$	10,624		$	1,236		$	1,838		$	25,678

	Commercial real estate			Construction		Residential real estate			Commercial  and  industrial			Consumer			Unallocated			Total
For the nine months ended September 30, 2016
Allowance for Loan Losses
Balance at December 31, 2015	$	3,934		$	1,044	$	2,075		$	13,969		$	917		$	2,476		$	24,415
Loan loss provision (credit)	(667		)	407		1,530			(1,554		)	922			(638		)	—
Recoveries	2,792			406		222			1,190			715			—			5,325
Loans charged off	(40		)	—		(64		)	(3,056		)	(1,342		)	—			(4,502		)
Balance at end of period	$	6,019		$	1,857	$	3,763		$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments
Balance at December 31, 2015	$	48		$	268	$	25		$	75		$	24		$	—		$	440
Provision for unfunded loan commitments	—			—		—			—			—			—			—
Balance at end of period	$	48		$	268	$	25		$	75		$	24		$	—		$	440
Reserve for credit losses
Reserve for loan losses	$	6,019		$	1,857	$	3,763		$	10,549		$	1,212		$	1,838		$	25,238
Reserve for unfunded lending commitments	48			268		25			75			24			—			440
Total reserve for credit losses	$	6,067		$	2,125	$	3,788		$	10,624		$	1,236		$	1,838		$	25,678

	Commercial real estate			Construction			Residential real estate			Commercial  and  industrial			Consumer			Unallocated		Total
For the three months ended September 30, 2015
Allowance for Loan Losses
Balance at June 30, 2015	$	5,032		$	1,356		$	2,463		$	11,355		$	1,001		$	2,294	$	23,501
Loan loss provision (credit)	(490		)	(293		)	(162		)	(2,245		)	99			3,091		—
Recoveries	408			155			162			2,885			179			—		3,789
Loans charged off	—			—			(50		)	(293		)	(324		)	—		(667		)
Balance at end of period	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments
Balance at June 30, 2015	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Provision for unfunded loan commitments	—			—			—			—			—			—		—
Balance at end of period	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Reserve for credit losses
Reserve for loan losses	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments	48			268			25			75			24			—		440
Total reserve for credit losses	$	4,998		$	1,486		$	2,438		$	11,777		$	979		$	5,385	$	27,063

	Commercial real estate			Construction			Residential real estate			Commercial  and  industrial			Consumer			Unallocated		Total
For the nine months ended September 30, 2015
Allowance for Loan Losses
Balance at December 31, 2014	$	5,614		$	1,133		$	2,121		$	6,844		$	1,047		$	5,294	$	22,053
Loan loss provision (credit)	(4,397		)	(193		)	(60		)	2,024			535			91		(2,000		)
Recoveries	4,011			278			746			3,440			457			—		8,932
Loans charged off	(278		)	—			(394		)	(606		)	(1,084		)	—		(2,362		)
Balance at end of period	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments
Balance at December 31, 2014	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Provision for unfunded loan commitments	—			—			—			—			—			—		—
Balance at end of period	$	48		$	268		$	25		$	75		$	24		$	—	$	440
Reserve for credit losses
Reserve for loan losses	$	4,950		$	1,218		$	2,413		$	11,702		$	955		$	5,385	$	26,623
Reserve for unfunded lending commitments	48			268			25			75			24			—		440
Total reserve for credit losses	$	4,998		$	1,486		$	2,438		$	11,777		$	979		$	5,385	$	27,063

An individual loan is impaired when, based on current information and events, management believes that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The following table presents the reserve for loan losses and the recorded investment in loans by portfolio segment and impairment evaluation method at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Reserve for loan losses						Recorded investment in loans
	Individually evaluated for impairment		Collectively evaluated for impairment		Total		Individually evaluated for impairment		Collectively evaluated for impairment		Total
September 30, 2016
Commercial real estate	$	74	$	5,945	$	6,019	$	4,329	$	960,451	$	964,780
Construction	—		1,857		1,857		—		182,981		182,981
Residential real estate	—		3,763		3,763		—		465,466		465,466
Commercial and industrial	25		10,524		10,549		7,471		397,798		405,269
Consumer	—		1,212		1,212		—		43,012		43,012
	$	99	$	23,301	23,400		$	11,800	$	2,049,708	$	2,061,508
Unallocated					1,838
					$	25,238
December 31, 2015
Commercial real estate	$	78	$	3,856	$	3,934	$	3,835	$	831,058	$	834,893
Construction	—		1,044		1,044		365		129,987		130,352
Residential real estate	—		2,075		2,075		18		298,372		298,390
Commercial and industrial	164		13,805		13,969		2,724		381,720		384,444
Consumer	—		917		917		—		39,850		39,850
	$	242	$	21,697	21,939		$	6,942	$	1,680,987	$	1,687,929
Unallocated					2,476
					$	24,415

Financing Receivable Credit Quality Indicators

The following table presents, by portfolio class, the recorded investment in loans by internally assigned grades at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Loan grades
	Acceptable		Pass-Watch		Special Mention		Substandard		Total
September 30, 2016
Originated loans (a):
Commercial real estate:
Owner occupied	$	266,610	$	6,811	$	1,091	$	6,389	$	280,901
Non-owner occupied	479,207		1,589		4,520		1,373		486,689
Total commercial real estate loans	745,817		8,400		5,611		7,762		767,590
Construction	168,558		—		—		—		168,558
Residential real estate	405,923		—		—		451		406,374
Commercial and industrial	340,082		10,274		5,173		23,171		378,700
Consumer	41,476		—		—		26		41,502
	$	1,701,856	$	18,674	$	10,784	$	31,410	$	1,762,724
Acquired loans (b):
Commercial real estate:
Owner occupied	$	89,484	$	2,441	$	1,563	$	1,614	$	95,102
Non-owner occupied	82,873		3,851		8,995		6,369		102,088
Total commercial real estate loans	172,357		6,292		10,558		7,983		197,190
Construction	14,363		—		—		60		14,423
Residential real estate	56,461		1,550		—		1,081		59,092
Commercial and industrial	24,750		557		588		674		26,569
Consumer	1,510		—		—		—		1,510
	$	269,441	$	8,399	$	11,146	$	9,798	$	298,784
Total loans:
Commercial real estate:
Owner occupied	$	356,094	$	9,252	$	2,654	$	8,003	$	376,003
Non-owner occupied	562,080		5,440		13,515		7,742		588,777
Total commercial real estate loans	918,174		14,692		16,169		15,745		964,780
Construction	182,921		—		—		60		182,981
Residential real estate	462,384		1,550		—		1,532		465,466
Commercial and industrial	364,832		10,831		5,761		23,845		405,269
Consumer	42,986		—		—		26		43,012
	$	1,971,297	$	27,073	$	21,930	$	41,208	$	2,061,508
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

	Loan grades
	Acceptable		Pass-Watch		Special Mention		Substandard		Total
December 31, 2015
Originated loans (a):
Commercial real estate:
Owner occupied	$	243,113	$	8,623	$	1,426	$	9,933	$	263,095
Non-owner occupied	411,137		9,825		4,522		5,895		431,379
Total commercial real estate loans	654,250		18,448		5,948		15,828		694,474
Construction	118,752		—		971		—		119,723
Residential real estate	236,574		—		—		510		237,084
Commercial and industrial	328,934		11,220		13,729		9,452		363,335
Consumer	38,350		—		—		12		38,362
	$	1,376,860	$	29,668	$	20,648	$	25,802	$	1,452,978
Acquired loans (b):
Commercial real estate:
Owner occupied	$	34,081	$	3,480	$	7,341	$	334	$	45,236
Non-owner occupied	71,334		2,751		9,386		11,712		95,183
Total commercial real estate loans	105,415		6,231		16,727		12,046		140,419
Construction	10,597		—		—		32		10,629
Residential real estate	60,151		—		—		1,155		61,306
Commercial and industrial	17,034		153		3,461		461		21,109
Consumer	1,485		—		—		3		1,488
	$	194,682	$	6,384	$	20,188	$	13,697	$	234,951
Total loans:
Commercial real estate:
Owner occupied	$	277,194	$	12,103	$	8,767	$	10,267	$	308,331
Non-owner occupied	482,471		12,576		13,908		17,607		526,562
Total commercial real estate loans	759,665		24,679		22,675		27,874		834,893
Construction	129,349		—		971		32		130,352
Residential real estate	296,725		—		—		1,665		298,390
Commercial and industrial	345,968		11,373		17,190		9,913		384,444
Consumer	39,835		—		—		15		39,850
	$	1,571,542	$	36,052	$	40,836	$	39,499	$	1,687,929
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

Past Due Financing Receivables

The following table presents, by portfolio class, an age analysis of past due loans, including loans placed on non-accrual at September 30, 2016 and December 31, 2015 (dollars in thousands):

30-89 days past due 90 days or more past due Total past due Current Total loans

September 30, 2016
Originated loans (a):
Commercial real estate:
Owner occupied	$	207	$	490	$	697	$	280,204	$	280,901
Non-owner occupied	—		—		—		486,689		486,689
Total commercial real estate loans	207		490		697		766,893		767,590
Construction	—		—		—		168,558		168,558
Residential real estate	2,625		—		2,625		403,749		406,374
Commercial and industrial	156		171		327		378,373		378,700
Consumer	203		26		229		41,273		41,502
	$	3,191	$	687	$	3,878	$	1,758,846	$	1,762,724
Acquired loans (b):
Commercial real estate:
Owner occupied	$	11	$	—	$	11	$	95,091	$	95,102
Non-owner occupied	—		—		—		102,088		102,088
Total commercial real estate loans	11		—		11		197,179		197,190
Construction	—		21		21		14,402		14,423
Residential real estate	1,172		586		1,758		57,334		59,092
Commercial and industrial	225		8		233		26,336		26,569
Consumer	28		—		28		1,482		1,510
	$	1,436	$	615	$	2,051	$	296,733	$	298,784
Total loans:
Commercial real estate:
Owner occupied	$	218	$	490	$	708	$	375,295	$	376,003
Non-owner occupied	—		—		—		588,777		588,777
Total commercial real estate loans	218		490		708		964,072		964,780
Construction	—		21		21		182,960		182,981
Residential real estate	3,797		586		4,383		461,083		465,466
Commercial and industrial	381		179		560		404,709		405,269
Consumer	231		26		257		42,755		43,012
	$	4,627	$	1,302	$	5,929	$	2,055,579	$	2,061,508
December 31, 2015
Originated loans (a):
Commercial real estate:
Owner occupied	$	1,020	$	719	$	1,739	$	261,356	$	263,095
Non-owner occupied	593		—		593		430,786		431,379
Total commercial real estate loans	1,613		719		2,332		692,142		694,474
Construction	—		—		—		119,723		119,723
Residential real estate	196		—		196		236,888		237,084
Commercial and industrial	346		239		585		362,750		363,335
Consumer	209		12		221		38,141		38,362
	$	2,364	$	970	$	3,334	$	1,449,644	$	1,452,978
Acquired loans (b):
Commercial real estate:

Owner occupied	$	—	$	—	$	—	$	45,236	$	45,236
Non-owner occupied	2,049		—		2,049		93,134		95,183
Total commercial real estate loans	2,049		—		2,049		138,370		140,419
Construction	46		—		46		10,583		10,629
Residential real estate	748		534		1,282		60,024		61,306
Commercial and industrial	6		5		11		21,098		21,109
Consumer	53		—		53		1,435		1,488
	$	2,902	$	539	$	3,441	$	231,510	$	234,951
Total loans:
Commercial real estate:
Owner occupied	$	1,020	$	719	$	1,739	$	306,592	$	308,331
Non-owner occupied	2,642		—		2,642		523,920		526,562
Total commercial real estate loans	3,662		719		4,381		830,512		834,893
Construction	46		—		46		130,306		130,352
Residential real estate	944		534		1,478		296,912		298,390
Commercial and industrial	352		244		596		383,848		384,444
Consumer	262		12		274		39,576		39,850
	$	5,266	$	1,509	$	6,775	$	1,681,154	$	1,687,929
(a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases.
(b) Loans acquired in the acquisition of Home and PPFS.

Impaired Financing Receivables, By Portfolio Class

The following table presents, by portfolio class, the average recorded investment in impaired loans for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Commercial real estate:
Owner occupied	$	1,912	$	3,063	$	2,129	$	3,225
Non-owner occupied	2,525		1,072		2,540		8,297
Total commercial real estate loans	4,437		4,135		4,669		11,522
Construction	—		443		—		543
Residential real estate	—		28		—		66
Commercial and industrial	7,462		2,712		7,534		2,815
Consumer	—		—		—		—
	$	11,899	$	7,318	$	12,203	$	14,946

The following table presents information related to impaired loans, by portfolio class, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Impaired loans
	With a related allowance		Without a related allowance		Total recorded balance		Unpaid principal balance		Related allowance
September 30, 2016
Commercial real estate:
Owner occupied	$	815	$	1,004	$	1,819	$	2,437	$	54
Non-owner occupied	632		1,878		2,510		2,511		20
Total commercial real estate loans	1,447		2,882		4,329		4,948		74
Construction	—		—		—		—		—
Residential real estate	—		—		—		—		—
Commercial and industrial	76		7,395		7,471		11,119		25
Consumer	—		—		—		—		—
	$	1,523	$	10,277	$	11,800	$	16,067	$	99
December 31, 2015
Commercial real estate:
Owner occupied	$	1,032	$	2,157	$	3,189	$	4,285	$	73
Non-owner occupied	646		—		646		646		5
Total commercial real estate loans	1,678		2,157		3,835		4,931		78
Construction	—		365		365		365		—
Residential real estate	—		18		18		18		—
Commercial and industrial	2,539		185		2,724		3,366		164
Consumer	—		—		—		—		—
	$	4,217	$	2,725	$	6,942	$	8,680	$	242

Average Recorded Investment In Impaired Loans

The following table presents, by portfolio class, the average recorded investment in impaired loans for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Commercial real estate:
Owner occupied	$	1,912	$	3,063	$	2,129	$	3,225
Non-owner occupied	2,525		1,072		2,540		8,297
Total commercial real estate loans	4,437		4,135		4,669		11,522
Construction	—		443		—		543
Residential real estate	—		28		—		66
Commercial and industrial	7,462		2,712		7,534		2,815
Consumer	—		—		—		—
	$	11,899	$	7,318	$	12,203	$	14,946

The following table presents information related to impaired loans, by portfolio class, at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Impaired loans
	With a related allowance		Without a related allowance		Total recorded balance		Unpaid principal balance		Related allowance
September 30, 2016
Commercial real estate:
Owner occupied	$	815	$	1,004	$	1,819	$	2,437	$	54
Non-owner occupied	632		1,878		2,510		2,511		20
Total commercial real estate loans	1,447		2,882		4,329		4,948		74
Construction	—		—		—		—		—
Residential real estate	—		—		—		—		—
Commercial and industrial	76		7,395		7,471		11,119		25
Consumer	—		—		—		—		—
	$	1,523	$	10,277	$	11,800	$	16,067	$	99
December 31, 2015
Commercial real estate:
Owner occupied	$	1,032	$	2,157	$	3,189	$	4,285	$	73
Non-owner occupied	646		—		646		646		5
Total commercial real estate loans	1,678		2,157		3,835		4,931		78
Construction	—		365		365		365		—
Residential real estate	—		18		18		18		—
Commercial and industrial	2,539		185		2,724		3,366		164
Consumer	—		—		—		—		—
	$	4,217	$	2,725	$	6,942	$	8,680	$	242

Schedule of Financing Receivables, Non Accrual Status

Information with respect to the Company’s non-performing loans, by portfolio class, at September 30, 2016 and December 31, 2015 is as follows (dollars in thousands):

	September 30, 2016		December 31, 2015
Commercial real estate:
Owner occupied	$	1,353	$	2,742
Non-owner occupied	2,711		434
Total commercial real estate loans	4,064		3,176
Construction	39		—
Residential real estate	1,443		1,427
Commercial and industrial	6,937		447
Consumer	—		3
Total non-accrual loans	$	12,483	$	5,053
Accruing loans which are contractually past due 90 days or more:
Construction	21		—
Commercial and industrial	12		56
Consumer	26		12
Total accruing loans which are contractually past due 90 days or more	$	59	$	68

Troubled Debt Restructurings on Financing Receivables

The following table presents, by portfolio segment, the information with respect to the Company’s loans that were modified and recorded as TDRs during the nine months ended September 30, 2016 and 2015 (dollars in thousands).

	Nine months ended September 30,
	2016			2015
	Number of loans	TDR outstanding recorded investment		Number of loans	TDR outstanding recorded investment
Commercial real estate	—	$	—	—	$	—
Construction	—	—		—	—
Residential real estate	—	—		—	—
Commercial and industrial	1	22		—	—
Consumer	—	—		—	—
	1	$	22	—	$	—

The following table presents, by portfolio segment, the post modification recorded investment for TDRs restructured during the nine months ended September 30, 2016.

Nine months ended September 30, 2016	Rate reduction		Term extension		Rate reduction and term extension		Total
Commercial real estate	$	—	$	—	$	—	$	—
Construction	—		—		—		—
Residential real estate	—		—		—		—
Commercial and industrial	—		22		—		22
Consumer	—		—		—		—
	$	—	$	22	$	—	$	22

Post Modification Troubled Debt Restructurings on Financing Receivables

The following table presents, by portfolio segment, the information with respect to the Company’s loans that were modified and recorded as TDRs during the nine months ended September 30, 2016 and 2015 (dollars in thousands).

	Nine months ended September 30,
	2016			2015
	Number of loans	TDR outstanding recorded investment		Number of loans	TDR outstanding recorded investment
Commercial real estate	—	$	—	—	$	—
Construction	—	—		—	—
Residential real estate	—	—		—	—
Commercial and industrial	1	22		—	—
Consumer	—	—		—	—
	1	$	22	—	$	—

The following table presents, by portfolio segment, the post modification recorded investment for TDRs restructured during the nine months ended September 30, 2016.

Nine months ended September 30, 2016	Rate reduction		Term extension		Rate reduction and term extension		Total
Commercial real estate	$	—	$	—	$	—	$	—
Construction	—		—		—		—
Residential real estate	—		—		—		—
Commercial and industrial	—		22		—		22
Consumer	—		—		—		—
	$	—	$	22	$	—	$	22

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Other Real Estate Owned ("OREO"), net (Tables)

9 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

Other Real Estate Roll Forward

The following table presents activity related to OREO for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	2,993		$	4,040		$	3,274		$	3,309
Additions	367			—			367			1,558
Dispositions	(1,683		)	(162		)	(1,964		)	(2,541		)
Change in valuation allowance	—			(7		)	—			1,545
Balances at end of period	$	1,677		$	3,871		$	1,677		$	3,871

Schedule Of Activity In Other Real Estate Owned Valuation Allowance

The following table summarizes activity in the OREO valuation allowance for the periods shown (dollars in thousands):

	Three months ended    September 30,				Nine months ended    September 30,
	2016		2015		2016		2015
Balance at beginning of period	$	776	$	771	$	776	$	2,323
Additions to the valuation allowance	—		7		—		12
Reductions due to sales	—		—		—		(1,557		)
Balance at end of period	$	776	$	778	$	776	$	778

Schedule Of Other Real Estate Owned Expenses

The following table summarizes OREO (income) expenses for the periods shown (dollars in thousands):

	Three months ended    September 30,					Nine months ended    September 30,
	2016			2015		2016			2015
Operating costs	$	49		$	53	$	215		$	159
Net (gains) losses on dispositions	(6		)	62		(246		)	(160		)
Increases in valuation allowance	—			7		167			12
Total	$	43		$	122	$	136		$	11

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Mortgage Servicing Rights ("MSRs") (Tables)

9 Months Ended

Sep. 30, 2016

Transfers and Servicing [Abstract]

Schedule of Servicing Assets at Fair Value

The following table presents activity in MSRs for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	2,229		$	2,276		$	2,186		$	2,248
Additions	197			130			579			506
Amortization	(180		)	(195		)	(519		)	(543		)
Balances at end of period	$	2,246		$	2,211		$	2,246		$	2,211

Mortgage Banking Income

Mortgage banking income, net, consisted of the following for the periods shown (dollars in thousands):

	Three months ended    September 30,						Nine months ended    September 30,
	2016			2015			2016			2015
Origination and processing fees	70			94			249			538
Gain on sales of loans, net	752			551			2,004			1,582
Servicing fees	215			174			517			512
Amortization	(180		)	(195		)	(519		)	(543		)
Mortgage banking income, net	$	857		$	624		$	2,251		$	2,089

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Goodwill and other intangible assets (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of CDI activity

The following table sets forth activity for CDI for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands).

	Three months ended September 30,						Nine months ended   September 30,
	2016			2015			2016			2015
Gross CDI balance, beginning of period	$	14,623		$	8,196		$	8,196		$	8,196
Accumulated amortization, beginning of period	(1,903		)	(923		)	(1,333		)	(513		)
CDI, net, beginning of period	12,720			7,273			6,863			7,683
Established through acquisitions	342			—			6,770			—
CDI current period amortization	(371		)	(205		)	(942		)	(615		)
Total CDI, end of period	$	12,691		$	7,068		$	12,691		$	7,068

Schedule of CDI future amortization expenses

The following table provides the estimated future amortization expense of CDI for the remaining period ending December 31, 2016 and the succeeding four years (dollars in thousands):

Years Ending December 31,
2016	$	374
2017	1,497
2018	1,497
2019	1,497
2020	1,497

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Basic and Diluted Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

The numerators and denominators used in computing basic and diluted net income per common share for the three and nine months ended September 30, 2016 and 2015 can be reconciled as follows (dollars in thousands, except per share data):

	Three months ended    September 30,				Nine months ended    September 30,
	2016		2015		2016		2015
Net income	$	4,089	$	5,099	$	10,853	$	15,012
Weighted-average shares outstanding - basic	74,001,997		71,868,045		72,532,961		71,743,576
Dilutive securities	167,268		101,323		1,342,762		105,835
Weighted-average shares outstanding - diluted	74,169,265		71,969,368		73,875,723		71,849,411
Common stock equivalent shares excluded due to antidilutive effect	3,319,862		3,361,774		3,348,537		3,361,774
Basic and diluted:
Net income per common share	$	0.06	$	0.07	$	0.15	$	0.21
Net income per common share (diluted)	$	0.06	$	0.07	$	0.15	$	0.21

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The Company used the Black-Scholes option-pricing model with the following weighted-average assumptions to value options that were granted in 2015: 

	2015
Dividend yield	0	%
Expected volatility	36.6	%
Risk-free interest rate	1.3	%
Expected option lives	5.0 years

Schedule of Share-based Compensation, Stock Options, Activity

The following table presents the activity related to stock options for the nine months ended September 30, 2016 and 2015:

	Options		Weighted- average exercise price		Weighted- average remaining contractual term (years)	Aggregate intrinsic value (000)
Options outstanding at January 1, 2016	3,375,909		$	5.44	9.0	$	4,243.7
Granted	14,222		3.71		8.4	29.9
Canceled / forfeited	(234	)	78.08		N/A	N/A
Exercised	(1,449	)	3.61		N/A	N/A
Expired	(1,697	)	209.87		N/A	N/A
Options outstanding at September 30, 2016	3,386,751		$	5.33	8.3	$	4,240.0
Options exercisable at September 30, 2016	86,751		$	25.78	4.7	$	49.0
Options outstanding at January 1, 2015	85,901		$	34.86	5.7	$	—
Granted	3,300,000		4.79		9.3	2,046.0
Canceled / forfeited	(8,011	)	19.52		N/A	N/A
Expired	(1,691	)	$	151.20	N/A	N/A
Options outstanding at September 30, 2015	3,376,199		$	5.45	9.2	$	2,046.0
Options exercisable at September 30, 2015	63,212		39.72		4.5	$	—

Schedule of Nonvested Restricted Stock Units Activity

The following table presents the activity related to non-vested restricted stock for the nine months endedSeptember 30, 2016:

	Number of shares		Weighted- average grant date fair value per share
Non-vested as of January 1, 2016	909,410		$	6.37
Granted	678,051		5.69
Vested	(333,688	)	5.24
Canceled / forfeited	(42,317	)	4.94
Non-vested as of September 30, 2016	1,211,456		$	6.35

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Interest Rate Swap Derivatives (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

As of September 30, 2016 and December 31, 2015, the notional values or contractual amounts and fair values of the Company’s derivatives not designated in hedge relationships were as follows (dollars in thousands):

	Asset Derivatives								Liability Derivatives
	September 30, 2016				December 31, 2015				September 30, 2016				December 31, 2015
	Notional/ Contract Amount		Fair Value (1)		Notional/ Contract Amount		Fair Value (1)		Notional/ Contract Amount		Fair Value (2)		Notional/ Contract Amount		Fair Value (2)
Interest rate swaps	$	194,485	$	18,097	$	169,720	$	8,646	$	194,485	$	18,097	$	169,720	$	8,646
(1) Included in Other Assets on the condensed consolidated balance sheet.
(2) Included in Other Liabilities on the condensed consolidated balance sheet.

Offsetting Assets and Liabilities

The following table illustrates the potential effect of the Company’s derivative master netting arrangements, by type of financial instrument, on the Company’s condensed consolidated balance sheet as of September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
							Gross Amounts of Financial Instruments Not Offset in the Balance Sheet
	Gross Amounts Recognized		Amounts offset in the Balance Sheet		Net Amounts in the Balance Sheet		Netting Adjustment Per Applicable Master Netting Agreements		Fair Value of Financial Collateral in the Balance Sheet		Net Amount
Asset Derivatives
Interest rate swaps	$	18,097	$	—	$	18,097	$	—	$	—	$	18,097
Liability Derivatives
Interest rate swaps	$	18,097	$	—	$	18,097	$	—	$	19,525	$	(1,428	)
	December 31, 2015
							Gross Amounts of Financial Instruments Not Offset in the Balance Sheet
	Gross Amounts Recognized		Amounts offset in the Balance Sheet		Net Amounts in the Balance Sheet		Netting Adjustment Per Applicable Master Netting Agreements		Fair Value of Financial Collateral in the Balance Sheet		Net Amount
Asset Derivatives
Interest rate swaps	$	8,646	$	—	$	8,646	$	—	$	—	$	8,646
Liability Derivatives
Interest rate swaps	$	8,646	$	—	$	8,646	$	—	$	8,595	$	51

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Financial Assets Measured On Recurring Basis

The Company’s only financial assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015 were as follows (dollars in thousands):

	Level 1		Level 2		Level 3
September 30, 2016
Assets:
Investment securities available-for-sale	$	—	$	523,275	$	—
Interest rate swap derivatives	—		18,097		—
Total assets	$	—	$	541,372	$	—
Liabilities:
Interest rate swap derivatives	$	—	$	18,097	$	—
December 31, 2015
Assets:
Investment securities available-for-sale	$	—	$	310,262	$	—
Interest rate swap derivatives	—		8,646		—
Total assets	$	—	$	318,908	$	—
Liabilities:
Interest rate swap derivatives	—		8,646		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table represents the assets measured at fair value on a nonrecurring basis by the Company at September 30, 2016 and December 31, 2015 (dollars in thousands):

	Level 1		Level 2		Level 3
September 30, 2016
Impaired loans	$	—	$	—	$	85
Other real estate owned	—		—		1,677
	$	—	$	—	$	1,762
December 31, 2015
Impaired loans	$	—	$	—	$	50
Other real estate owned	—		—		3,274
	$	—	$	—	$	3,324

Fair Value Inputs, Assets, Quantitative Information

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015 (dollars in thousands):

	September 30, 2016
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	85	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	1,677	Market approach	Appraised value less selling costs of 5% to 10%
	December 31, 2015
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	50	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	3,274	Market approach	Appraised value less selling costs of 5% to 10%

Fair Value, by Balance Sheet Grouping

The estimated fair values of the Company’s significant on-balance sheet financial instruments at September 30, 2016 and December 31, 2015 were approximately as follows (dollars in thousands):

		September 30, 2016				December 31, 2015
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	152,360	$	152,360	$	77,805	$	77,805
Investment securities:
Available-for-sale	Level 2	523,275		523,275		310,262		310,262
Held-to-maturity	Level 2	141,326		148,213		139,424		142,260
FHLB stock	Level 2	3,270		3,270		3,000		3,000
Loans held-for-sale	Level 2	9,478		9,478		3,621		3,621
Loans, net	Level 3	2,034,353		2,043,932		1,662,095		1,656,986
BOLI	Level 3	56,708		56,708		54,450		54,450
MSRs	Level 3	2,246		2,686		2,186		3,027
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646
Financial liabilities:
Deposits	Level 2	2,745,081		2,744,387		2,083,088		2,082,748
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2016

Regulated Operations [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

Bancorp’s and Bank’s actual capital amounts and ratios and the required capital ratios under the prompt corrective action framework as of September 30, 2016 and December 31, 2015 are presented in the following table (dollars in thousands): 

	Actual				Regulatory minimum to be “adequately capitalized”				Basel III Minimum Capital Adequacy with Capital Conservation Buffer		Regulatory minimum to be “well capitalized”
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount	Ratio	Capital Amount		Ratio
September 30, 2016
Tier 1 leverage (to average assets)
Bancorp	$	249,431	8.4	%	$	119,171	4.0	%	N/A	N/A	$	148,964	5.0	%
Bank	245,681		8.3	%	119,062		4.0	%	N/A	N/A	148,828		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	249,431		10.4		108,234		4.5		122,665	5.1	156,338		6.5
Bank	245,681		10.2		108,242		4.5		122,674	5.1	156,349		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	249,431		10.4		144,312		6.0		158,743	6.6	192,416		8.0
Bank	245,681		10.2		144,322		6.0		158,755	6.6	192,430		8.0
Total capital (to risk-weighted assets)
Bancorp	275,112		11.4		192,416		8.0		206,847	8.6	240,520		10.0
Bank	271,362		11.3		192,430		8.0		206,862	8.6	240,537		10.0
December 31, 2015
Tier 1 leverage (to average assets)
Bancorp	$	227,542	9.4	%	$	96,817	4.0	%	N/A	N/A	$	121,022	5.0	%
Bank	223,533		9.3	%	96,662		4.0	%	N/A	N/A	120,827		5.0	%
CET1 capital (to risk weighted assets)
Bancorp	227,542		11.5		88,818		4.5		N/A	N/A	128,292		6.5
Bank	223,533		11.4		88,663		4.5		N/A	N/A	128,069		6.5
Tier 1 capital (to risk-weighted assets)
Bancorp	227,542		11.5		118,424		6.0		N/A	N/A	157,898		8.0
Bank	223,533		11.4		118,218		6.0		N/A	N/A	157,624		8.0
Total capital (to risk-weighted assets)
Bancorp	252,401		12.8		157,898		8.0		N/A	N/A	197,373		10.0
Bank	248,346		12.6		157,624		8.0		N/A	N/A	197,030		10.0

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Business Combinations Narrative (Details) $ in Thousands			3 Months Ended	9 Months Ended
	Aug. 01, 2016 USD ($) shares	Mar. 04, 2016 USD ($) location	Sep. 30, 2016 USD ($)	Sep. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Business Acquisition [Line Items]
Preliminary goodwill			$ 84,775	$ 84,775		$ 78,610
Core Deposits
Business Acquisition [Line Items]
Useful life				10 years
Prime Pacific Financial Services
Business Acquisition [Line Items]
Preliminary goodwill	$ 2,181
Merger related charges			$ 1,200	$ 1,300
Deposits	101,544
Cash paid in lieu of fractional shares	$ 1
Prime Pacific Financial Services | Common Stock
Business Acquisition [Line Items]
Conversion of right to receive into shares	0.3050
Common stock issued in conversion (shares) | shares	2,921,012
Bank Of America, Branch Locations
Business Acquisition [Line Items]
Preliminary goodwill		$ 3,984
Deposits		$ 469,889
Premium on deposits, percentage		2.00%
Cash paid in lieu of fractional shares		$ 9,700
Expenses related to branch acquisition					$ 2,300
Bank Of America, Branch Locations | Core Deposits
Business Acquisition [Line Items]
Useful life		9 years 12 months
Bank Of America, Branch Locations | Oregon
Business Acquisition [Line Items]
Number of businesses acquired | location		12
Bank Of America, Branch Locations | Washington
Business Acquisition [Line Items]
Number of businesses acquired | location		3

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Business Combinations Liabilities and Assets Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 01, 2016	Sep. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 84,775	$ 78,610
Prime Pacific Financial Services
Business Acquisition [Line Items]
Cash paid in lieu of fractional shares	$ 1
Total purchase price	16,239
Cash and cash equivalents	7,625
FHLB stock	424
Loans, net	102,837
Premises and equipment	6,302
Deferred tax asset	2,156
Bank owned life insurance	1,491
Other assets	2,364
Total assets	123,199
Deposits	101,544
Other liabilities	7,939
Total liabilities	109,483
Net identifiable assets acquired	13,716
Intangible asset acquired	342
Goodwill	$ 2,181
Common Stock | Prime Pacific Financial Services
Business Acquisition [Line Items]
Cascade Bancorp common stock share issued for Prime Pacific shares (shares)	2,921,012
Cascade share price (usd per share)	$ 5.56
Consideration from common stock conversion (0.3050 ratio)	$ 16,238

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Business Combinations Pro Forma Information (Details) - Prime Pacific Financial Services - USD ($) $ / shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Net interest income	$ 24,379	$ 21,775	$ 71,547	$ 62,815
Non-interest expense	24,243	20,487	73,843	63,742
Net income	$ 5,151	$ 5,314	$ 12,846	$ 13,704
Net income per diluted share (usd per share)	$ 0	$ 0	$ 0	$ 0

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Business Combinations Branch Acquisitions Liabilities and Assets Acquired (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 04, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 84,775		$ 78,610
Bank Of America, Branch Locations
Business Acquisition [Line Items]
Cash and cash equivalents		$ 456,611
Premises and equipment, net		3,113
Core deposit intangibles		6,427
Goodwill		3,984
Other assets		463
Total assets		470,598
Deposits		469,889
Other liabilities		709
Total liabilities		$ 470,598

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Investment Securities (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Net Investment Income [Line Items]
Amortized cost	$ 518,475	$ 307,648
Gross unrealized gains	5,259	4,108
Gross unrealized losses	(459)	(1,494)
Estimated fair value	523,275	310,262
Amortized cost	141,326	139,424
Gross unrealized gains	6,889	2,843
Gross unrealized losses	(2)	(7)
Estimated fair value	148,213	142,260
U.S. Agency mortgage-backed securities (MBS)
Net Investment Income [Line Items]
Amortized cost	168,862	154,691
Gross unrealized gains	2,715	2,698
Gross unrealized losses	(81)	(455)
Estimated fair value	171,496	156,934
Amortized cost	102,226	98,800
Gross unrealized gains	4,816	1,875
Gross unrealized losses	(2)	(5)
Estimated fair value	107,040	100,670
Non-agency MBS
Net Investment Income [Line Items]
Amortized cost	269,508	118,765
Gross unrealized gains	1,540	477
Gross unrealized losses	(296)	(1,016)
Estimated fair value	270,752	118,226
U.S. Agency asset-backed securities
Net Investment Income [Line Items]
Amortized cost	6,876	7,468
Gross unrealized gains	605	800
Gross unrealized losses	(52)	(23)
Estimated fair value	7,429	8,245
Corporate securities
Net Investment Income [Line Items]
Amortized cost	72,695	26,199
Gross unrealized gains	382	121
Gross unrealized losses	(30)	0
Estimated fair value	73,047	26,320
Mutual fund
Net Investment Income [Line Items]
Amortized cost	534	525
Gross unrealized gains	17	12
Gross unrealized losses	0	0
Estimated fair value	551	537
Obligations of state and political subdivisions
Net Investment Income [Line Items]
Amortized cost	38,810	421
Gross unrealized gains	2,073	0
Gross unrealized losses	0	0
Estimated fair value	40,883	421
Tax credit investments
Net Investment Income [Line Items]
Amortized cost	290	40,203
Gross unrealized gains	0	968
Gross unrealized losses	0	(2)
Estimated fair value	$ 290	$ 41,169

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Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Available-for-sale Securities [Abstract]
Available-for-sale, amortized cost, due in one year or less	$ 10,397
Available-for-sale, amortized cost, due after one year through five years	68,008
Available-for-sale, amortized cost, due after five years through ten years	40,715
Available-for-sale, amortized cost, due after ten years	398,821
Available-for-sale, amortized cost, mutual fund	534
Available-for-sale, amortized cost, tax credit investments	0
Available-for-sale securities, debt maturities, amortized cost basis	518,475
Available-for-sale, estimated fair value, due in one year or less	10,427
Available-for-sale, estimated fair value, due after one year through five years	68,389
Available-for-sale, estimated fair value, due after five years through ten years	41,060
Available-for-sale, estimated fair value, due after ten years	402,848
Available-for-sale, estimated fair value, mutual fund	551
Available-for-sale, estimated fair value, tax credit investments	0
Available-for-sale securities, debt securities	523,275
Held-to-maturity Securities
Held-to-maturity securities, amortized cost, due in one year or less	0
Held-to-maturity securities, amortized cost, due after one year through five years	30,431
Held-to-maturity securities, amortized cost, due after five years through ten years	90,472
Held-to-maturity securities, amortized cost, due after ten years	20,133
Held-to-maturity securities, amortized cost, mutual fund	0
Held-to-maturity securities, amortized cost, tax credit investments	290
Held-to-maturity securities, debt maturities, net carrying amount	141,326	$ 139,424
Held-to-maturity, estimated fair value, due in one year or less	0
Held-to-maturity, estimated fair value, due after one year through five years	31,165
Held-to-maturity, estimated fair value, due after five years through ten years	95,870
Held-to-maturity, estimated fair value, due after ten years	20,888
Held-to-maturity, estimated fair value, mutual fund	0
Held-to-maturity, estimated fair value, tax credit investments	290
Held-to-maturity securities, estimated fair value	$ 148,213	$ 142,260

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Investment Securities (Available For Sale Securities Continuous Unrealized Loss Position Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Net Investment Income [Line Items]
Investment securities estimated fair value, less than 12 months	$ 105,627	$ 90,042
Investment securities estimated fair value, 12 months or more	232	48,322
Investment securities estimated fair value, total	105,859	138,364
Investment securities unrealized losses, less than 12 months	(456)	(888)
Investment securities unrealized losses,12 months or more	(3)	(606)
Investment securities unrealized losses, total	(459)	(1,494)
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value	2,590	2,788
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value	0	0
Held-to-maturity securities, continuous unrealized loss position, fair value	2,590	2,788
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss	(2)	(7)
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss	0	0
Held-to-maturity securities, continuous unrealized loss position, accumulated loss	(2)	(7)
U.S. Agency MBS
Net Investment Income [Line Items]
Investment securities estimated fair value, less than 12 months	33,576	23,630
Investment securities estimated fair value, 12 months or more	232	34,576
Investment securities estimated fair value, total	33,808	58,206
Investment securities unrealized losses, less than 12 months	(78)	(123)
Investment securities unrealized losses,12 months or more	(3)	(332)
Investment securities unrealized losses, total	(81)	(455)
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value	1,882	2,063
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value	0	0
Held-to-maturity securities, continuous unrealized loss position, fair value	1,882	2,063
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss	(2)	(5)
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss	0	0
Held-to-maturity securities, continuous unrealized loss position, accumulated loss	(2)	(5)
Non-Agency MBS
Net Investment Income [Line Items]
Investment securities estimated fair value, less than 12 months	56,692	66,412
Investment securities estimated fair value, 12 months or more	0	12,225
Investment securities estimated fair value, total	56,692	78,637
Investment securities unrealized losses, less than 12 months	(296)	(765)
Investment securities unrealized losses,12 months or more	0	(251)
Investment securities unrealized losses, total	(296)	(1,016)
U.S. Agency asset-backed securities
Net Investment Income [Line Items]
Investment securities estimated fair value, less than 12 months	1,929	0
Investment securities estimated fair value, 12 months or more	0	1,521
Investment securities estimated fair value, total	1,929	1,521
Investment securities unrealized losses, less than 12 months	(52)	0
Investment securities unrealized losses,12 months or more	0	(23)
Investment securities unrealized losses, total	(52)	(23)
Corporate Securities
Net Investment Income [Line Items]
Investment securities estimated fair value, less than 12 months	13,430
Investment securities estimated fair value, 12 months or more	0
Investment securities estimated fair value, total	13,430
Investment securities unrealized losses, less than 12 months	(30)
Investment securities unrealized losses,12 months or more	0
Investment securities unrealized losses, total	(30)
Obligations of state and political subdivisions
Net Investment Income [Line Items]
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value	708	725
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value	0	0
Held-to-maturity securities, continuous unrealized loss position, fair value	708	725
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, accumulated loss	0	(2)
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, accumulated loss	0	0
Held-to-maturity securities, continuous unrealized loss position, accumulated loss	$ 0	$ (2)

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Investment Securities Narrative (Details) - securities	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Number of securities in the loss position	38	46

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Loans and reserve for credit losses (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 2,061,508	$ 1,687,929
Loans and leases receivable, before fees, gross, percent	100.00%	100.00%
Deferred loan fees	$ (1,917)	$ (1,419)
Reserve for loan losses	(25,238)	(24,415)
Loans, net	2,034,353	1,662,095
Commercial real estate: | Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 376,003	$ 308,331
Loans and leases receivable, before fees, gross, percent	18.10%	18.30%
Commercial real estate: | Non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 588,777	$ 526,562
Loans and leases receivable, before fees, gross, percent	28.60%	31.20%
Commercial real estate: | Total commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 964,780	$ 834,893
Loans and leases receivable, before fees, gross, percent	46.70%	49.50%
Reserve for loan losses	$ (6,019)	$ (3,934)
Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 182,981	$ 130,352
Loans and leases receivable, before fees, gross, percent	8.90%	7.70%
Reserve for loan losses	$ (1,857)	$ (1,044)
Residential real estate | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 465,466	$ 298,390
Loans and leases receivable, before fees, gross, percent	22.60%	17.70%
Reserve for loan losses	$ (3,763)	$ (2,075)
Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 405,269	$ 384,444
Loans and leases receivable, before fees, gross, percent	19.70%	22.80%
Reserve for loan losses	$ (10,549)	$ (13,969)
Consumer | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 43,012	$ 39,850
Loans and leases receivable, before fees, gross, percent	2.10%	2.30%
Reserve for loan losses	$ (1,212)	$ (917)
Originated Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 1,762,724	$ 1,452,978
Loans and leases receivable, before fees, gross, percent	100.00%	100.00%
Deferred loan fees	$ (1,917)	$ (1,419)
Reserve for loan losses	(25,238)	(24,415)
Loans, net	1,735,569	1,427,144
Originated Loans | Commercial real estate: | Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 280,901	$ 263,095
Loans and leases receivable, before fees, gross, percent	15.80%	18.10%
Originated Loans | Commercial real estate: | Non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 486,689	$ 431,379
Loans and leases receivable, before fees, gross, percent	27.60%	29.70%
Originated Loans | Commercial real estate: | Total commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 767,590	$ 694,474
Loans and leases receivable, before fees, gross, percent	43.40%	47.80%
Originated Loans | Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 168,558	$ 119,723
Loans and leases receivable, before fees, gross, percent	9.60%	8.20%
Originated Loans | Residential real estate | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 406,374	$ 237,084
Loans and leases receivable, before fees, gross, percent	23.10%	16.30%
Originated Loans | Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 378,700	$ 363,335
Loans and leases receivable, before fees, gross, percent	21.50%	25.00%
Originated Loans | Consumer | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 41,502	$ 38,362
Loans and leases receivable, before fees, gross, percent	2.40%	2.70%
Acquired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 298,784	$ 234,951
Loans and leases receivable, before fees, gross, percent	100.00%	100.00%
Acquired Loans | Commercial real estate: | Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 95,102	$ 45,236
Loans and leases receivable, before fees, gross, percent	31.80%	19.30%
Acquired Loans | Commercial real estate: | Non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 102,088	$ 95,183
Loans and leases receivable, before fees, gross, percent	34.20%	40.50%
Acquired Loans | Commercial real estate: | Total commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 197,190	$ 140,419
Loans and leases receivable, before fees, gross, percent	66.00%	59.80%
Acquired Loans | Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 14,423	$ 10,629
Loans and leases receivable, before fees, gross, percent	4.80%	4.50%
Acquired Loans | Residential real estate | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 59,092	$ 61,306
Loans and leases receivable, before fees, gross, percent	19.80%	26.10%
Acquired Loans | Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 26,569	$ 21,109
Loans and leases receivable, before fees, gross, percent	8.90%	9.00%
Acquired Loans | Consumer | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 1,510	$ 1,488
Loans and leases receivable, before fees, gross, percent	0.50%	0.60%

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Loans and reserve for credit losses (Narrative) (Details)			3 Months Ended		9 Months Ended
	Aug. 01, 2016 USD ($)	May 16, 2014 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) payment	Sep. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Financing Receivable, Impaired [Line Items]
Percentage of real estate related loans			78.20%		78.20%
Loans participated to third-parties			$ 50,700,000		$ 50,700,000			$ 44,200,000
Loans and leases receivable, before fees, gross, amount			$ 2,061,508,000		$ 2,061,508,000			1,687,929,000
Percentage of loans acquired, substandard			3.30%		3.30%
Loans and leases receivable, gross			$ 2,061,508,000		$ 2,061,508,000			1,687,929,000
Percentage of acquired loans covered			7.50%		7.50%
Loan loss recovery			$ 0	$ 0	$ 0	$ (2,000,000)
Loans and leases receivable, allowance			25,238,000		25,238,000			24,415,000
Loans and leases receivable, additional allowance			0		0
Total accruing loans which are contractually past due 90 days or more			59,000		59,000			68,000
Impaired loans, total recorded balance			11,800,000		11,800,000			6,942,000
Interest income recognized for cash payments received on impaired loans			500,000		1,100,000
TDR outstanding recorded investment			22,000	0	22,000	0
Troubled Debt Restructuring
Financing Receivable, Impaired [Line Items]
Loan loss recovery					0	0
Loans and leases receivable, allowance			0		0			0
Impaired loans, total recorded balance			600,000		$ 600,000			800,000
Number of payments before upgrade to accrual status review | payment					6
Loans and leases receivable, impaired, commitment to lend			0	0	$ 0	0
TDR outstanding recorded investment			0	0	0	0
Unallocated
Financing Receivable, Impaired [Line Items]
Loans and leases receivable, allowance			1,838,000		1,838,000			2,476,000
Substandard
Financing Receivable, Impaired [Line Items]
Loans and leases receivable, before fees, gross, amount			$ 41,208,000		$ 41,208,000			39,499,000
Originated Loans
Financing Receivable, Impaired [Line Items]
Percentage of real estate related loans			76.10%		76.10%
Loans and leases receivable, before fees, gross, amount			$ 1,762,724,000		$ 1,762,724,000			1,452,978,000
Loans and leases receivable, gross			1,762,724,000		1,762,724,000			1,452,978,000
Loans and leases receivable, allowance			25,238,000		25,238,000			24,415,000
Originated Loans | Substandard
Financing Receivable, Impaired [Line Items]
Loans and leases receivable, before fees, gross, amount			31,410,000		31,410,000			25,802,000
Acquired and Acquired Covered Loans
Financing Receivable, Impaired [Line Items]
Loans and leases receivable, life of loans		10 years
Loans and leases receivable, gross			298,800,000		$ 298,800,000
Risk weighting for covered assets under loss sharing agreement, percentage					20.00%
Risk weighting for covered assets not under loss sharing agreement, percentage					100.00%
Acquired and Acquired Covered Loans | Single Family
Financing Receivable, Impaired [Line Items]
Loss sharing agreement, term					10 years
Acquired and Acquired Covered Loans | Non-residential
Financing Receivable, Impaired [Line Items]
Loss sharing agreement, term					5 years
Loss sharing agreement, recovery period					3 years
Acquired and Acquired Covered Loans | Prime Pacific Financial Services
Financing Receivable, Impaired [Line Items]
Assets, fair value adjustment	$ 2,300,000				$ 2,300,000
Acquired and Acquired Covered Loans | Home Federal Bank
Financing Receivable, Impaired [Line Items]
Assets, fair value adjustment		$ 6,000,000			1,900,000
Acquired Covered Loans
Financing Receivable, Impaired [Line Items]
Loans and leases receivable, gross			22,300,000		22,300,000
Loan receivables
Financing Receivable, Impaired [Line Items]
Loan loss recovery			0	0	0	(2,000,000)
Loans and leases receivable, allowance			25,238,000	26,623,000	25,238,000	26,623,000	$ 24,666,000	24,415,000	$ 23,501,000	$ 22,053,000
Loan receivables | Unallocated
Financing Receivable, Impaired [Line Items]
Loan loss recovery			(1,544,000)	3,091,000	(638,000)	91,000
Loans and leases receivable, allowance			$ 1,838,000	$ 5,385,000	$ 1,838,000	$ 5,385,000	$ 3,382,000	$ 2,476,000	$ 2,294,000	$ 5,294,000

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Loans and reserve for credit losses (Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Covered Loans, Loss Share Payable (Receivable) [Roll Forward]
Balance at beginning of period	$ 201	$ 289
Paid to FDIC	(201)	(857)
Increase due to impairment	0	(53)
FDIC reimbursement	396	1,077
Shared loss expenses	(28)	(92)
Adjustments from prior periods	0	4
Balance at end of period	$ 368	$ 368

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Loans and reserve for credit losses (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			$ 24,415
Loan loss recovery	$ 0	$ 0	0	$ (2,000)
Allowance at the end of period	25,238		25,238
Total reserve for credit losses	25,678	27,063	25,678	27,063
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			2,476
Allowance at the end of period	1,838		1,838
Total reserve for credit losses	1,838	5,385	1,838	5,385
Commercial real estate: | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			3,934
Allowance at the end of period	6,019		6,019
Total reserve for credit losses	6,067	4,998	6,067	4,998
Construction | Construction
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			1,044
Allowance at the end of period	1,857		1,857
Total reserve for credit losses	2,125	1,486	2,125	1,486
Residential real estate | Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			2,075
Allowance at the end of period	3,763		3,763
Total reserve for credit losses	3,788	2,438	3,788	2,438
Commercial and industrial | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			13,969
Allowance at the end of period	10,549		10,549
Total reserve for credit losses	10,624	11,777	10,624	11,777
Consumer | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period			917
Allowance at the end of period	1,212		1,212
Total reserve for credit losses	1,236	979	1,236	979
Loan receivables
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	24,666	23,501	24,415	22,053
Loan loss recovery	0	0	0	(2,000)
Recoveries	1,082	3,789	5,325	8,932
Loans charged off	(510)	(667)	(4,502)	(2,362)
Allowance at the end of period	25,238	26,623	25,238	26,623
Loan receivables | Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	3,382	2,294	2,476	5,294
Loan loss recovery	(1,544)	3,091	(638)	91
Recoveries	0	0	0	0
Loans charged off	0	0	0	0
Allowance at the end of period	1,838	5,385	1,838	5,385
Loan receivables | Commercial real estate: | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	4,391	5,032	3,934	5,614
Loan loss recovery	1,554	(490)	(667)	(4,397)
Recoveries	74	408	2,792	4,011
Loans charged off	0	0	(40)	(278)
Allowance at the end of period	6,019	4,950	6,019	4,950
Loan receivables | Construction | Construction
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	1,259	1,356	1,044	1,133
Loan loss recovery	271	(293)	407	(193)
Recoveries	327	155	406	278
Loans charged off	0	0	0	0
Allowance at the end of period	1,857	1,218	1,857	1,218
Loan receivables | Residential real estate | Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	2,674	2,463	2,075	2,121
Loan loss recovery	1,044	(162)	1,530	(60)
Recoveries	45	162	222	746
Loans charged off	0	(50)	(64)	(394)
Allowance at the end of period	3,763	2,413	3,763	2,413
Loan receivables | Commercial and industrial | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	11,982	11,355	13,969	6,844
Loan loss recovery	(1,766)	(2,245)	(1,554)	2,024
Recoveries	428	2,885	1,190	3,440
Loans charged off	(95)	(293)	(3,056)	(606)
Allowance at the end of period	10,549	11,702	10,549	11,702
Loan receivables | Consumer | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	978	1,001	917	1,047
Loan loss recovery	441	99	922	535
Recoveries	208	179	715	457
Loans charged off	(415)	(324)	(1,342)	(1,084)
Allowance at the end of period	1,212	955	1,212	955
Reserve for unfunded lending commitments
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	440	440	440	440
Loan loss recovery	0	0	0	0
Allowance at the end of period	440	440	440	440
Reserve for unfunded lending commitments | Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	0	0	0	0
Loan loss recovery	0	0	0	0
Allowance at the end of period	0	0	0	0
Reserve for unfunded lending commitments | Commercial real estate: | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	48	48	48	48
Loan loss recovery	0	0	0	0
Allowance at the end of period	48	48	48	48
Reserve for unfunded lending commitments | Construction | Construction
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	268	268	268	268
Loan loss recovery	0	0	0	0
Allowance at the end of period	268	268	268	268
Reserve for unfunded lending commitments | Residential real estate | Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	25	25	25	25
Loan loss recovery	0	0	0	0
Allowance at the end of period	25	25	25	25
Reserve for unfunded lending commitments | Commercial and industrial | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	75	75	75	75
Loan loss recovery	0	0	0	0
Allowance at the end of period	75	75	75	75
Reserve for unfunded lending commitments | Consumer | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Allowance at the beginning of period	24	24	24	24
Loan loss recovery	0	0	0	0
Allowance at the end of period	$ 24	$ 24	$ 24	$ 24

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Loans and reserve for credit losses (Reserve for Loan Losses and Recorded Investment in Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Total	$ 25,238	$ 24,415
Total loans	2,061,508	1,687,929
Allocated financing receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Individually evaluated for impairment	99	242
Reserve for loan losses collectively evaluated for impairment	23,301	21,697
Reserve for loan losses Total	23,400	21,939
Recorded investment in loans Individually evaluated for impairment	11,800	6,942
Recorded investment in loans, collectively evaluated for impairment	2,049,708	1,680,987
Total loans	2,061,508	1,687,929
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Total	1,838	2,476
Commercial real estate: | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Individually evaluated for impairment	74	78
Reserve for loan losses collectively evaluated for impairment	5,945	3,856
Reserve for loan losses Total	6,019	3,934
Recorded investment in loans Individually evaluated for impairment	4,329	3,835
Recorded investment in loans, collectively evaluated for impairment	960,451	831,058
Total loans	964,780	834,893
Construction | Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Individually evaluated for impairment	0	0
Reserve for loan losses collectively evaluated for impairment	1,857	1,044
Reserve for loan losses Total	1,857	1,044
Recorded investment in loans Individually evaluated for impairment	0	365
Recorded investment in loans, collectively evaluated for impairment	182,981	129,987
Total loans	182,981	130,352
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Individually evaluated for impairment	0	0
Reserve for loan losses collectively evaluated for impairment	3,763	2,075
Reserve for loan losses Total	3,763	2,075
Recorded investment in loans Individually evaluated for impairment	0	18
Recorded investment in loans, collectively evaluated for impairment	465,466	298,372
Total loans	465,466	298,390
Commercial and industrial | Commercial and industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Individually evaluated for impairment	25	164
Reserve for loan losses collectively evaluated for impairment	10,524	13,805
Reserve for loan losses Total	10,549	13,969
Recorded investment in loans Individually evaluated for impairment	7,471	2,724
Recorded investment in loans, collectively evaluated for impairment	397,798	381,720
Total loans	405,269	384,444
Consumer | Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserve for loan losses Individually evaluated for impairment	0	0
Reserve for loan losses collectively evaluated for impairment	1,212	917
Reserve for loan losses Total	1,212	917
Recorded investment in loans Individually evaluated for impairment	0	0
Recorded investment in loans, collectively evaluated for impairment	43,012	39,850
Total loans	$ 43,012	$ 39,850

XML

Loans and reserve for credit losses (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 2,061,508	$ 1,687,929
Acceptable
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,971,297	1,571,542
Pass-Watch
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	27,073	36,052
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	21,930	40,836
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	41,208	39,499
Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	376,003	308,331
Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	588,777	526,562
Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	964,780	834,893
Commercial real estate | Acceptable | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	356,094	277,194
Commercial real estate | Acceptable | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	562,080	482,471
Commercial real estate | Acceptable | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	918,174	759,665
Commercial real estate | Pass-Watch | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	9,252	12,103
Commercial real estate | Pass-Watch | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	5,440	12,576
Commercial real estate | Pass-Watch | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	14,692	24,679
Commercial real estate | Special Mention | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	2,654	8,767
Commercial real estate | Special Mention | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	13,515	13,908
Commercial real estate | Special Mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	16,169	22,675
Commercial real estate | Substandard | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	8,003	10,267
Commercial real estate | Substandard | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	7,742	17,607
Commercial real estate | Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	15,745	27,874
Construction | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	182,981	130,352
Construction | Acceptable | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	182,921	129,349
Construction | Pass-Watch | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Construction | Special Mention | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	971
Construction | Substandard | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	60	32
Residential real estate | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	465,466	298,390
Residential real estate | Acceptable | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	462,384	296,725
Residential real estate | Pass-Watch | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,550	0
Residential real estate | Special Mention | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Residential real estate | Substandard | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,532	1,665
Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	405,269	384,444
Commercial and industrial | Acceptable | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	364,832	345,968
Commercial and industrial | Pass-Watch | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	10,831	11,373
Commercial and industrial | Special Mention | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	5,761	17,190
Commercial and industrial | Substandard | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	23,845	9,913
Consumer | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	43,012	39,850
Consumer | Acceptable | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	42,986	39,835
Consumer | Pass-Watch | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Consumer | Special Mention | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Consumer | Substandard | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	26	15
Originated Loans
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,762,724	1,452,978
Originated Loans | Acceptable
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,701,856	1,376,860
Originated Loans | Pass-Watch
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	18,674	29,668
Originated Loans | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	10,784	20,648
Originated Loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	31,410	25,802
Originated Loans | Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	280,901	263,095
Originated Loans | Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	486,689	431,379
Originated Loans | Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	767,590	694,474
Originated Loans | Commercial real estate | Acceptable | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	266,610	243,113
Originated Loans | Commercial real estate | Acceptable | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	479,207	411,137
Originated Loans | Commercial real estate | Acceptable | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	745,817	654,250
Originated Loans | Commercial real estate | Pass-Watch | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	6,811	8,623
Originated Loans | Commercial real estate | Pass-Watch | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,589	9,825
Originated Loans | Commercial real estate | Pass-Watch | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	8,400	18,448
Originated Loans | Commercial real estate | Special Mention | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,091	1,426
Originated Loans | Commercial real estate | Special Mention | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	4,520	4,522
Originated Loans | Commercial real estate | Special Mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	5,611	5,948
Originated Loans | Commercial real estate | Substandard | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	6,389	9,933
Originated Loans | Commercial real estate | Substandard | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,373	5,895
Originated Loans | Commercial real estate | Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	7,762	15,828
Originated Loans | Construction | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	168,558	119,723
Originated Loans | Construction | Acceptable | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	168,558	118,752
Originated Loans | Construction | Pass-Watch | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Originated Loans | Construction | Special Mention | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	971
Originated Loans | Construction | Substandard | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Originated Loans | Residential real estate | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	406,374	237,084
Originated Loans | Residential real estate | Acceptable | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	405,923	236,574
Originated Loans | Residential real estate | Pass-Watch | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Originated Loans | Residential real estate | Special Mention | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Originated Loans | Residential real estate | Substandard | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	451	510
Originated Loans | Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	378,700	363,335
Originated Loans | Commercial and industrial | Acceptable | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	340,082	328,934
Originated Loans | Commercial and industrial | Pass-Watch | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	10,274	11,220
Originated Loans | Commercial and industrial | Special Mention | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	5,173	13,729
Originated Loans | Commercial and industrial | Substandard | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	23,171	9,452
Originated Loans | Consumer | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	41,502	38,362
Originated Loans | Consumer | Acceptable | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	41,476	38,350
Originated Loans | Consumer | Pass-Watch | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Originated Loans | Consumer | Special Mention | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Originated Loans | Consumer | Substandard | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	26	12
Acquired Loans
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	298,784	234,951
Acquired Loans | Acceptable
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	269,441	194,682
Acquired Loans | Pass-Watch
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	8,399	6,384
Acquired Loans | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	11,146	20,188
Acquired Loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	9,798	13,697
Acquired Loans | Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	95,102	45,236
Acquired Loans | Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	102,088	95,183
Acquired Loans | Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	197,190	140,419
Acquired Loans | Commercial real estate | Acceptable | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	89,484	34,081
Acquired Loans | Commercial real estate | Acceptable | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	82,873	71,334
Acquired Loans | Commercial real estate | Acceptable | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	172,357	105,415
Acquired Loans | Commercial real estate | Pass-Watch | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	2,441	3,480
Acquired Loans | Commercial real estate | Pass-Watch | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	3,851	2,751
Acquired Loans | Commercial real estate | Pass-Watch | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	6,292	6,231
Acquired Loans | Commercial real estate | Special Mention | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,563	7,341
Acquired Loans | Commercial real estate | Special Mention | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	8,995	9,386
Acquired Loans | Commercial real estate | Special Mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	10,558	16,727
Acquired Loans | Commercial real estate | Substandard | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,614	334
Acquired Loans | Commercial real estate | Substandard | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	6,369	11,712
Acquired Loans | Commercial real estate | Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	7,983	12,046
Acquired Loans | Construction | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	14,423	10,629
Acquired Loans | Construction | Acceptable | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	14,363	10,597
Acquired Loans | Construction | Pass-Watch | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Acquired Loans | Construction | Special Mention | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Acquired Loans | Construction | Substandard | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	60	32
Acquired Loans | Residential real estate | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	59,092	61,306
Acquired Loans | Residential real estate | Acceptable | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	56,461	60,151
Acquired Loans | Residential real estate | Pass-Watch | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,550	0
Acquired Loans | Residential real estate | Special Mention | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Acquired Loans | Residential real estate | Substandard | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,081	1,155
Acquired Loans | Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	26,569	21,109
Acquired Loans | Commercial and industrial | Acceptable | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	24,750	17,034
Acquired Loans | Commercial and industrial | Pass-Watch | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	557	153
Acquired Loans | Commercial and industrial | Special Mention | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	588	3,461
Acquired Loans | Commercial and industrial | Substandard | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	674	461
Acquired Loans | Consumer | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,510	1,488
Acquired Loans | Consumer | Acceptable | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	1,510	1,485
Acquired Loans | Consumer | Pass-Watch | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Acquired Loans | Consumer | Special Mention | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	0	0
Acquired Loans | Consumer | Substandard | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, before fees, gross, amount	$ 0	$ 3

XML

Loans and reserve for credit losses (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 5,929	$ 6,775
Current	2,055,579	1,681,154
Total loans	2,061,508	1,687,929
30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,627	5,266
90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,302	1,509
Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	708	1,739
Current	375,295	306,592
Total loans	376,003	308,331
Commercial real estate | Owner occupied | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	218	1,020
Commercial real estate | Owner occupied | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	490	719
Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	2,642
Current	588,777	523,920
Total loans	588,777	526,562
Commercial real estate | Non-owner occupied | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	2,642
Commercial real estate | Non-owner occupied | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	708	4,381
Current	964,072	830,512
Total loans	964,780	834,893
Commercial real estate | Commercial real estate | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	218	3,662
Commercial real estate | Commercial real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	490	719
Construction | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	21	46
Current	182,960	130,306
Total loans	182,981	130,352
Construction | Construction | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	46
Construction | Construction | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	21	0
Residential real estate | Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,383	1,478
Current	461,083	296,912
Total loans	465,466	298,390
Residential real estate | Residential real estate | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,797	944
Residential real estate | Residential real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	586	534
Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	560	596
Current	404,709	383,848
Total loans	405,269	384,444
Commercial and industrial | Commercial and industrial | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	381	352
Commercial and industrial | Commercial and industrial | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	179	244
Consumer | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	257	274
Current	42,755	39,576
Total loans	43,012	39,850
Consumer | Consumer | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	231	262
Consumer | Consumer | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	26	12
Originated Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,878	3,334
Current	1,758,846	1,449,644
Total loans	1,762,724	1,452,978
Originated Loans | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,191	2,364
Originated Loans | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	687	970
Originated Loans | Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	697	1,739
Current	280,204	261,356
Total loans	280,901	263,095
Originated Loans | Commercial real estate | Owner occupied | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	207	1,020
Originated Loans | Commercial real estate | Owner occupied | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	490	719
Originated Loans | Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	593
Current	486,689	430,786
Total loans	486,689	431,379
Originated Loans | Commercial real estate | Non-owner occupied | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	593
Originated Loans | Commercial real estate | Non-owner occupied | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Originated Loans | Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	697	2,332
Current	766,893	692,142
Total loans	767,590	694,474
Originated Loans | Commercial real estate | Commercial real estate | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	207	1,613
Originated Loans | Commercial real estate | Commercial real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	490	719
Originated Loans | Construction | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	168,558	119,723
Total loans	168,558	119,723
Originated Loans | Construction | Construction | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Originated Loans | Construction | Construction | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Originated Loans | Residential real estate | Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,625	196
Current	403,749	236,888
Total loans	406,374	237,084
Originated Loans | Residential real estate | Residential real estate | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,625	196
Originated Loans | Residential real estate | Residential real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Originated Loans | Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	327	585
Current	378,373	362,750
Total loans	378,700	363,335
Originated Loans | Commercial and industrial | Commercial and industrial | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	156	346
Originated Loans | Commercial and industrial | Commercial and industrial | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	171	239
Originated Loans | Consumer | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	229	221
Current	41,273	38,141
Total loans	41,502	38,362
Originated Loans | Consumer | Consumer | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	203	209
Originated Loans | Consumer | Consumer | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	26	12
Acquired Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,051	3,441
Current	296,733	231,510
Total loans	298,784	234,951
Acquired Loans | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,436	2,902
Acquired Loans | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	615	539
Acquired Loans | Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	11	0
Current	95,091	45,236
Total loans	95,102	45,236
Acquired Loans | Commercial real estate | Owner occupied | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	11	0
Acquired Loans | Commercial real estate | Owner occupied | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Acquired Loans | Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	2,049
Current	102,088	93,134
Total loans	102,088	95,183
Acquired Loans | Commercial real estate | Non-owner occupied | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	2,049
Acquired Loans | Commercial real estate | Non-owner occupied | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Acquired Loans | Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	11	2,049
Current	197,179	138,370
Total loans	197,190	140,419
Acquired Loans | Commercial real estate | Commercial real estate | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	11	2,049
Acquired Loans | Commercial real estate | Commercial real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Acquired Loans | Construction | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	21	46
Current	14,402	10,583
Total loans	14,423	10,629
Acquired Loans | Construction | Construction | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	46
Acquired Loans | Construction | Construction | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	21	0
Acquired Loans | Residential real estate | Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,758	1,282
Current	57,334	60,024
Total loans	59,092	61,306
Acquired Loans | Residential real estate | Residential real estate | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,172	748
Acquired Loans | Residential real estate | Residential real estate | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	586	534
Acquired Loans | Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	233	11
Current	26,336	21,098
Total loans	26,569	21,109
Acquired Loans | Commercial and industrial | Commercial and industrial | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	225	6
Acquired Loans | Commercial and industrial | Commercial and industrial | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	8	5
Acquired Loans | Consumer | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	28	53
Current	1,482	1,435
Total loans	1,510	1,488
Acquired Loans | Consumer | Consumer | 30-89 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	28	53
Acquired Loans | Consumer | Consumer | 90 days or more past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 0	$ 0

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Loans and reserve for credit losses (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	$ 1,523	$ 4,217
Impaired loans, without a related allowance	10,277	2,725
Impaired loans, total recorded balance	11,800	6,942
Impaired loans, unpaid principal balance	16,067	8,680
Impaired loans, related allowance	99	242
Commercial real estate | Owner occupied
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	815	1,032
Impaired loans, without a related allowance	1,004	2,157
Impaired loans, total recorded balance	1,819	3,189
Impaired loans, unpaid principal balance	2,437	4,285
Impaired loans, related allowance	54	73
Commercial real estate | Non-owner occupied
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	632	646
Impaired loans, without a related allowance	1,878	0
Impaired loans, total recorded balance	2,510	646
Impaired loans, unpaid principal balance	2,511	646
Impaired loans, related allowance	20	5
Commercial real estate | Commercial real estate
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	1,447	1,678
Impaired loans, without a related allowance	2,882	2,157
Impaired loans, total recorded balance	4,329	3,835
Impaired loans, unpaid principal balance	4,948	4,931
Impaired loans, related allowance	74	78
Construction | Construction
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	0	0
Impaired loans, without a related allowance	0	365
Impaired loans, total recorded balance	0	365
Impaired loans, unpaid principal balance	0	365
Impaired loans, related allowance	0	0
Residential real estate | Residential real estate
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	0	0
Impaired loans, without a related allowance	0	18
Impaired loans, total recorded balance	0	18
Impaired loans, unpaid principal balance	0	18
Impaired loans, related allowance	0	0
Commercial and industrial | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	76	2,539
Impaired loans, without a related allowance	7,395	185
Impaired loans, total recorded balance	7,471	2,724
Impaired loans, unpaid principal balance	11,119	3,366
Impaired loans, related allowance	25	164
Consumer | Consumer
Financing Receivable, Impaired [Line Items]
Impaired loans, with specific valuation allowances	0	0
Impaired loans, without a related allowance	0	0
Impaired loans, total recorded balance	0	0
Impaired loans, unpaid principal balance	0	0
Impaired loans, related allowance	$ 0	$ 0

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Loans and reserve for credit losses (Average Recorded Investment in Impaired Financing Receivables) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	$ 11,899	$ 7,318	$ 12,203	$ 14,946
Commercial real estate | Owner occupied
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	1,912	3,063	2,129	3,225
Commercial real estate | Non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	2,525	1,072	2,540	8,297
Commercial real estate | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	4,437	4,135	4,669	11,522
Construction | Construction
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	0	443	0	543
Residential real estate | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	0	28	0	66
Commercial and industrial | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	7,462	2,712	7,534	2,815
Consumer | Consumer
Financing Receivable, Recorded Investment [Line Items]
Impaired loans	$ 0	$ 0	$ 0	$ 0

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Loans and reserve for credit losses (Schedule of Financing Receivables, Non Accrual Status) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	$ 12,483	$ 5,053
Total accruing loans which are contractually past due 90 days or more	59	68
Commercial real estate: | Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	1,353	2,742
Commercial real estate: | Non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	2,711	434
Commercial real estate: | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	4,064	3,176
Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	39	0
Total accruing loans which are contractually past due 90 days or more	21	0
Residential real estate | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	1,443	1,427
Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	6,937	447
Total accruing loans which are contractually past due 90 days or more	12	56
Consumer | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total non-accrual loans	0	3
Total accruing loans which are contractually past due 90 days or more	$ 26	$ 12

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Loans and reserve for credit losses Loans and reserve for credit losses (Schedule of Financing Receivables, Modified and Recorded as TDRs) ( (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($) loan	Sep. 30, 2015 USD ($) loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	1	0
TDR outstanding recorded investment | $	$ 22	$ 0
Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	0	0
TDR outstanding recorded investment | $	$ 0	$ 0
Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	0	0
TDR outstanding recorded investment | $	$ 0	$ 0
Residential real estate | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	0	0
TDR outstanding recorded investment | $	$ 0	$ 0
Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	1	0
TDR outstanding recorded investment | $	$ 22	$ 0
Consumer | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	0	0
TDR outstanding recorded investment | $	$ 0	$ 0

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Loans and reserve for credit losses Loans and reserve for credit losses (Schedule of Financing Receivables, Post Modification) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Rate reduction	$ 0
Term extension	22
Rate reduction and term extension	0
Total	22
Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Rate reduction	0
Term extension	0
Rate reduction and term extension	0
Total	0
Construction | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Rate reduction	0
Term extension	0
Rate reduction and term extension	0
Total	0
Residential real estate | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Rate reduction	0
Term extension	0
Rate reduction and term extension	0
Total	0
Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Rate reduction	0
Term extension	22
Rate reduction and term extension	0
Total	22
Consumer | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Rate reduction	0
Term extension	0
Rate reduction and term extension	0
Total	$ 0

XML

Other Real Estate Owned ("OREO"), net (Other Real Estate Roll Forward) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other Real Estate Owned [Roll Forward]
Balance at beginning of period	$ 2,993	$ 4,040	$ 3,274	$ 3,309
Additions	367	0	367	1,558
Dispositions	(1,683)	(162)	(1,964)	(2,541)
Change in valuation allowance	0	(7)	0	1,545
Balances at end of period	$ 1,677	$ 3,871	$ 1,677	$ 3,871

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Other Real Estate Owned ("OREO"), net (Schedule of Activity in Other Real Estate Owned Valuation Allowance) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Real Estate Owned Valuation Allowance [Roll Forward]
Balance at beginning of period	$ 776	$ 771	$ 776	$ 2,323
Additions to the valuation allowance	0	7	0	12
Reductions due to sales	0	0	0	(1,557)
Balance at end of period	$ 776	$ 778	$ 776	$ 778

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Other Real Estate Owned ("OREO"), net (Schedule of Other Real Estate Owned Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Real Estate [Abstract]
Operating costs	$ 49	$ 53	$ 215	$ 159
Net (gains) losses on dispositions	(6)	62	(246)	(160)
Additions to the valuation allowance	0	7	167	12
Total	$ 43	$ 122	$ 136	$ 11

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Mortgage Servicing Rights ("MSRs") (Narrative) (Details) - MSRs - USD ($)	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Servicing Assets at Fair Value [Line Items]
MSRs	$ 2,246,000	$ 2,229,000	$ 2,186,000	$ 2,211,000	$ 2,276,000	$ 2,248,000
Valuation allowance	$ 0		$ 0

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Mortgage Servicing Rights ("MSRs") (Schedule of Serving Assets at Fair Value) (Details) - MSRs - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	$ 2,229	$ 2,276	$ 2,186	$ 2,248
Additions	197	130	579	506
Amortization	(180)	(195)	(519)	(543)
Balances at end of period	$ 2,246	$ 2,211	$ 2,246	$ 2,211

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Mortgage Servicing Rights ("MSRs") (Mortgage Banking Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Servicing Assets at Fair Value [Line Items]
Mortgage banking income, net	$ 857	$ 624	$ 2,251	$ 2,089
MSRs
Servicing Assets at Fair Value [Line Items]
Origination and processing fees, MBAs	70	94	249	538
Gain on sales of loans, net, MBAs	752	551	2,004	1,582
Servicing fees	215	174	517	512
Amortization	(180)	(195)	(519)	(543)
Mortgage banking income, net	$ 857	$ 624	$ 2,251	$ 2,089

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Goodwill and other intangible assets (Details) - USD ($) $ in Thousands		9 Months Ended
	Mar. 04, 2016	Sep. 30, 2016	Aug. 01, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Line Items]
Goodwill		$ 84,775		$ 78,610
Core Deposits
Goodwill [Line Items]
Useful life		10 years
Prime Pacific Financial Services
Goodwill [Line Items]
Goodwill			$ 2,181
Bank Of America, Branch Locations
Goodwill [Line Items]
Goodwill	$ 3,984
Bank Of America, Branch Locations | Core Deposits
Goodwill [Line Items]
Useful life	9 years 12 months
Home Federal Bank
Goodwill [Line Items]
Goodwill					$ 78,600

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Goodwill and other intangible assets - Intangible Assets (Details) - Core Deposits - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross CDI balance, beginning of period					$ 14,623	$ 8,196	$ 8,196	$ 8,196
Accumulated amortization, beginning of period					$ (1,903)	$ (1,333)	$ (923)	$ (513)
Finite-lived Intangible Assets [Roll Forward]
CDI, net, beginning of period	$ 12,720	$ 7,273	$ 6,863	$ 7,683
Established through acquisitions	342	0	6,770	0
CDI current period amortization	(371)	(205)	(942)	(615)
Total CDI, end of period	$ 12,691	$ 7,068	$ 12,691	$ 7,068

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Goodwill and other intangible assets - Future Amortization Expense (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016	$ 374
2017	1,497
2018	1,497
2019	1,497
2020	$ 1,497

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Basic and Diluted Net Income per Share (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 4,089	$ 5,099	$ 10,853	$ 15,012
Weighted-average shares outstanding - basic (in shares)	74,001,997	71,868,045	72,532,961	71,743,576
Dilutive securities (in shares)	167,268	101,323	1,342,762	105,835
Weighted-average shares outstanding - diluted (in shares)	74,169,265	71,969,368	73,875,723	71,849,411
Common stock equivalent shares excluded due to antidilutive effect (in shares)	3,319,862	3,361,774	3,348,537	3,361,774
Basic and diluted:
Net income per common share (in dollars per share)	$ 0.06	$ 0.07	$ 0.15	$ 0.21
Net income per common share (diluted) (in dollars per share)	$ 0.06	$ 0.07	$ 0.15	$ 0.21

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Stock-Based Compensation (Narrative) (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved under stock-based compensation plans, available for future grants (in shares)	1,621,245
Shares granted during period (in shares)	678,051
Weighted average grant date fair value, grants in period (in shares)	$ 5.69	$ 4.98
Options granted during period, gross (in shares)	14,222	3,300,000
Percentage of options vested	100.00%
Fair value assumptions, expected dividend rate	0.00%		0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		5 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted during period (in shares)	678,051	397,472
Allocated share-based compensation expense	$ 1,500,000	$ 1,000,000
Unrecognized share based compensation - restricted stock units	$ 5,500,000
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	5 years
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 800,000	$ 700,000
Total compensation cost not yet recognized, stock options	3,600,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share based compensation - restricted stock units	$ 274,000.000		$ 0
Prime Pacific Financial Services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted during period, gross (in shares)	14,222
Weighted-average exercise price (in usd per share)	$ 3.71

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Stock-Based Compensation (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Dividend yield	0.00%	0.00%
Expected volatility		36.60%
Risk-free interest rate		1.30%
Expected option lives		5 years

XML

Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Options
Options outstanding at beginning of period (in shares)	3,375,909	85,901	85,901
Granted (in shares)	14,222	3,300,000
Canceled / forfeited (in shares)	(234)	(8,011)
Exercised (in shares)	(1,449)
Expired (in shares)	(1,697)	(1,691)
Options outstanding at end of period (in shares)	3,386,751	3,376,199	3,375,909	85,901
Options exercisable at end of period (in shares)	86,751	63,212
Weighted- average exercise price
Options outstanding at beginning of period ( in dollars per share)	$ 5.44	$ 34.86	$ 34.86
Granted (in dollars per share)	3.71	4.79
Canceled / forfeited (in dollars per share)	78.08	19.52
Exercised (in dollars per share)	3.61
Expired (in dollars per share)	209.87	151.20
Options outstanding at end of period (in dollars per share)	5.33	5.45	$ 5.44	$ 34.86
Options exercisable at end of period (in dollars per share)	$ 25.78	$ 39.72
Options, Additional Disclosures
Weighted-average remaining contractual term (years), Options outstanding	8 years 3 months	9 years 2 months 15 days	8 years 11 months 29 days	5 years 8 months 15 days
Weighted-average remaining contractual term (years), grants in period	8 years 4 months 30 days	9 years 3 months 15 days
Weighted-average remaining contractual term (years), Options exercisable	4 years 8 months 1 day	4 years 5 months 15 days
Aggregate intrinsic value outstanding	$ 4,240,000	$ 2,046,000	$ 4,243,700	$ 0
Aggregate intrinsic value, grants in period	29,900	2,046,000
Aggregate intrinsic value exercisable	$ 49,000	$ 0

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Stock-Based Compensation (Schedule of Nonvested Restricted Stock Units Activity) (Details)	9 Months Ended
	Sep. 30, 2016 $ / shares shares
Number of shares
Non-vested at beginning of period (in shares) | shares	909,410
Granted (in shares) | shares	678,051
Vested (in shares) | shares	(333,688)
Canceled / forfeited (in shares) | shares	(42,317)
Non-vested at end of period (in shares) | shares	1,211,456
Weighted- average grant date fair value per share
Non-vested at beginning of period (in dollars per share) | $ / shares	$ 6.37
Granted (in dollars per share) | $ / shares	5.69
Vested (in dollars per share) | $ / shares	5.24
Canceled / forfeited (in dollars per share) | $ / shares	4.94
Non-vested at end of period (in dollars per share) | $ / shares	$ 6.35

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Interest Rate Swap Derivatives (Schedule Of Notional Amounts Of Outstanding Derivative Positions) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Derivative [Line Items]
Swap fee income	$ (713)	$ (595)	$ (1,845)	$ (1,895)
Collateral already posted, fair value	19,500		19,500		$ 8,600
Not Designated as Hedging Instrument | Interest Rate Swap
Derivative [Line Items]
Asset derivative, notional/contract amount	194,485		194,485		169,720
Liability derivatives, notional/contract amount	194,485		194,485		169,720
Not Designated as Hedging Instrument | Interest Rate Swap | Other Assets
Derivative [Line Items]
Asset derivative, fair value	18,097		18,097		8,646
Not Designated as Hedging Instrument | Interest Rate Swap | Other Liabilities
Derivative [Line Items]
Liability derivatives, fair value	$ 18,097		$ 18,097		$ 8,646

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Interest Rate Swap Derivatives (Offsetting Assets And Liabilities) (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Assets
Derivative [Line Items]
Asset derivative, fair value	$ 18,097	$ 8,646
Asset derivative, amounts offset in the balance sheet	0	0
Asset derivative, net amounts in the balance sheet	18,097	8,646
Asset derivative, netting adjustment per applicable master netting agreements	0	0
Asset derivative, fair value of financial collateral in the balance sheet	0	0
Asset derivative, net amount	18,097	8,646
Other Liabilities
Derivative [Line Items]
Liability derivatives, fair value	18,097	8,646
Liability derivatives, amounts offset in balance sheet	0	0
Liability derivatives, net amounts in balance sheet	18,097	8,646
Liability derivatives, netting adjustment per applicable master netting agreements	0	0
Liability derivatives, fair value of financial collateral in the balance sheet	19,525	8,595
Liability derivatives, net amount	$ (1,428)	$ 51

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 2,415	$ 2,626	$ 6,400	$ 8,635
Deferred tax assets, net	$ 46,211		$ 46,211		$ 50,673

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Fair Value Measurements (Fair Value Financial Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	$ 523,275	$ 310,262
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Interest rate swap derivatives	0	0
Total assets	0	0
Interest rate swap derivatives	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	523,275	310,262
Interest rate swap derivatives	18,097	8,646
Total assets	541,372	318,908
Interest rate swap derivatives	18,097	8,646
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available-for-sale	0	0
Interest rate swap derivatives	0	0
Total assets	0	0
Interest rate swap derivatives	$ 0	$ 0

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Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 1,523		$ 4,217
Other real estate owned	1,677	$ 2,993	3,274	$ 3,871	$ 4,040	$ 3,309
Level 3 | Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	85		50
Level 3 | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	1,677		3,274
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	1,677		3,274
Fair Value, Measurements, Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value, nonrecurring measurements	0		0
Fair Value, Measurements, Nonrecurring | Level 1 | Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0		0
Fair Value, Measurements, Nonrecurring | Level 1 | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0		0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value, nonrecurring measurements	0		0
Fair Value, Measurements, Nonrecurring | Level 2 | Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0		0
Fair Value, Measurements, Nonrecurring | Level 2 | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0		0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value, nonrecurring measurements	1,762		3,324
Fair Value, Measurements, Nonrecurring | Level 3 | Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 85		$ 50

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Fair Value Measurements (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	$ 1,523	$ 4,217
Other real estate owned	1,677	3,274	$ 2,993	$ 3,871	$ 4,040	$ 3,309
Level 3 | Impaired Loans
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans	$ 85	$ 50
Valuation Techniques	Market approach	Market approach
Unobservable Input	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Level 3 | Impaired Loans | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Selling costs (as a percent)	5.00%	5.00%
Discount to appraised value (as a percent)	5.00%	5.00%
Level 3 | Impaired Loans | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Selling costs (as a percent)	10.00%	10.00%
Discount to appraised value (as a percent)	50.00%	50.00%
Level 3 | Other Real Estate Owned
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Other real estate owned	$ 1,677	$ 3,274
Valuation Techniques	Market approach	Market approach
Unobservable Input	Appraised value less selling costs of 5% to 10%	Appraised value less selling costs of 5% to 10%
Level 3 | Other Real Estate Owned | Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Selling costs (as a percent)	5.00%	5.00%
Level 3 | Other Real Estate Owned | Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Selling costs (as a percent)	10.00%	10.00%

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Fair Value Measurements (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value	$ 523,275	$ 310,262
Investment Securities held-to-maturity, estimated fair value (in dollars)	148,213	142,260
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value	0	0
Interest rate swap derivatives	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value	523,275	310,262
Interest rate swap derivatives	18,097	8,646
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value	0	0
Interest rate swap derivatives	0	0
Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	152,360	77,805
Estimated fair value	523,275	310,262
Investment Securities held-to-maturity, estimated fair value (in dollars)	141,326	139,424
FHLB stock	3,270	3,000
Loans held-for-sale	9,478	3,621
Loans, net	2,034,353	1,662,095
BOLI	56,708	54,450
MSRs	2,246	2,186
Interest rate swap derivatives	18,097	8,646
Deposits	2,745,081	2,083,088
Interest rate swap derivatives	18,097	8,646
Estimated fair value | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	152,360	77,805
Estimated fair value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value	523,275	310,262
Investment Securities held-to-maturity, estimated fair value (in dollars)	148,213	142,260
FHLB stock	3,270	3,000
Loans held-for-sale	9,478	3,621
Interest rate swap derivatives	18,097	8,646
Deposits	2,744,387	2,082,748
Interest rate swap derivatives	18,097	8,646
Estimated fair value | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans, net	2,043,932	1,656,986
BOLI	56,708	54,450
MSRs	$ 2,686	$ 3,027

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Regulatory Matters (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Cascade Bancorp
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual capital amount Tier 1 leverage (to average assets)	$ 249,431	$ 227,542
Actual capital amount to Tier 1 common (to risk-weighted assets)	249,431	227,542
Actual capital amount Tier 1 capital (to risk-weighted assets)	249,431	227,542
Actual capital amount total capital (to risk-weighted assets)	$ 275,112	$ 252,401
Actual ratio Tier 1 leverage (to average assets)	8.40%	9.40%
Actual ratio Tier 1 common (to risk-weighted assets)	10.40%	11.50%
Actual ratio Tier 1 capital (to risk-weighted assets)	10.40%	11.50%
Actual ratio Total capital (to risk-weighted assets)	11.40%	12.80%
Regulatory minimum to be adequately capitalized capital amount Tier 1 leverage (to average assets)	$ 119,171	$ 96,817
Regulatory minimum to be adequately capitalized capital amount Tier 1 common (to risk-weighted assets)	108,234	88,818
Regulatory minimum to be adequately capitalized capital amount Tier 1capital (to risk-weighted assets)	144,312	118,424
Regulatory minimum to be adequately capitalized total capital (to risk-weighted assets)	$ 192,416	$ 157,898
Regulatory minimum to be adequately capitalized ratio Tier 1 leverage (to average assets)	4.00%	4.00%
Regulatory minimum to be adequately capitalized ratio Tier 1 common (to risk-weighted assets)	4.50%	4.50%
Regulatory minimum to be adequately capitalized ratio Tier 1capital (to risk-weighted assets)	6.00%	6.00%
Regulatory minimum to be adequately capitalized ratio Total capital (to risk-weighted assets)	8.00%	8.00%
Minimum capital adequacy with capital buffer amount Tier 1 common (to risk-weighted assets)	$ 122,665
Minimum capital adequacy with capital buffer amount Tier 1 capital (to risk-weighted assets)	158,743
Minimum capital adequacy with capital buffer amount Total capital (to risk-weighted assets)	$ 206,847
Minimum capital adequacy with capital buffer ratio Tier 1 common (to risk-weighted assets)	5.10%
Minimum capital adequacy with capital buffer ratio Tier 1 capital (to risk-weighted assets)	6.60%
Minimum capital adequacy with capital butter ratio Total capital (to risk-weighted assets)	8.60%
Regulatory minimum to be well capitalized under prompt corrective action provisions capital amount Tier 1 leverage (to average assets)	$ 148,964	$ 121,022
Regulatory minimum to be well capitalized under prompt corrective action provisions common equity Tier 1 (to risk-weighted assets)	156,338	128,292
Regulatory minimum to be well capitalized under prompt corrective action provisions capital amount Tier 1 capital (to risk-weighted assets)	192,416	157,898
Regulatory minimum to be well capitalized under prompt corrective action provisions total capital amount (to risk-weighted assets)	$ 240,520	$ 197,373
Regulatory minimum to be well capitalized under prompt corrective action provisions capital ratio Tier 1 leverage (to average assets)	5.00%	5.00%
Regulatory minimum to be well capitalized under prompt corrective action provisions capital ratio Tier 1 common (to risk-weighted assets)	6.50%	6.50%
Regulatory minimum to be well capitalized under prompt corrective action provisions capital ratio Tier 1 capital (to risk-weighted assets)	8.00%	8.00%
Regulatory minimum to be well capitalized under prompt corrective action provisions total capital ratio (to risk-weighted assets)	10.00%	10.00%
Bank of the Cascades
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Actual capital amount Tier 1 leverage (to average assets)	$ 245,681	$ 223,533
Actual capital amount to Tier 1 common (to risk-weighted assets)	245,681	223,533
Actual capital amount Tier 1 capital (to risk-weighted assets)	245,681	223,533
Actual capital amount total capital (to risk-weighted assets)	$ 271,362	$ 248,346
Actual ratio Tier 1 leverage (to average assets)	8.30%	9.30%
Actual ratio Tier 1 common (to risk-weighted assets)	10.20%	11.40%
Actual ratio Tier 1 capital (to risk-weighted assets)	10.20%	11.40%
Actual ratio Total capital (to risk-weighted assets)	11.30%	12.60%
Regulatory minimum to be adequately capitalized capital amount Tier 1 leverage (to average assets)	$ 119,062	$ 96,662
Regulatory minimum to be adequately capitalized capital amount Tier 1 common (to risk-weighted assets)	108,242	88,663
Regulatory minimum to be adequately capitalized capital amount Tier 1capital (to risk-weighted assets)	144,322	118,218
Regulatory minimum to be adequately capitalized total capital (to risk-weighted assets)	$ 192,430	$ 157,624
Regulatory minimum to be adequately capitalized ratio Tier 1 leverage (to average assets)	4.00%	4.00%
Regulatory minimum to be adequately capitalized ratio Tier 1 common (to risk-weighted assets)	4.50%	4.50%
Regulatory minimum to be adequately capitalized ratio Tier 1capital (to risk-weighted assets)	6.00%	6.00%
Regulatory minimum to be adequately capitalized ratio Total capital (to risk-weighted assets)	8.00%	8.00%
Minimum capital adequacy with capital buffer amount Tier 1 common (to risk-weighted assets)	$ 122,674
Minimum capital adequacy with capital buffer amount Tier 1 capital (to risk-weighted assets)	158,755
Minimum capital adequacy with capital buffer amount Total capital (to risk-weighted assets)	$ 206,862
Minimum capital adequacy with capital buffer ratio Tier 1 common (to risk-weighted assets)	5.10%
Minimum capital adequacy with capital buffer ratio Tier 1 capital (to risk-weighted assets)	6.60%
Minimum capital adequacy with capital butter ratio Total capital (to risk-weighted assets)	8.60%
Regulatory minimum to be well capitalized under prompt corrective action provisions capital amount Tier 1 leverage (to average assets)	$ 148,828	$ 120,827
Regulatory minimum to be well capitalized under prompt corrective action provisions common equity Tier 1 (to risk-weighted assets)	156,349	128,069
Regulatory minimum to be well capitalized under prompt corrective action provisions capital amount Tier 1 capital (to risk-weighted assets)	192,430	157,624
Regulatory minimum to be well capitalized under prompt corrective action provisions total capital amount (to risk-weighted assets)	$ 240,537	$ 197,030
Regulatory minimum to be well capitalized under prompt corrective action provisions capital ratio Tier 1 leverage (to average assets)	5.00%	5.00%
Regulatory minimum to be well capitalized under prompt corrective action provisions capital ratio Tier 1 common (to risk-weighted assets)	6.50%	6.50%
Regulatory minimum to be well capitalized under prompt corrective action provisions capital ratio Tier 1 capital (to risk-weighted assets)	8.00%	8.00%
Regulatory minimum to be well capitalized under prompt corrective action provisions total capital ratio (to risk-weighted assets)	10.00%	10.00%