Loan growth was up $169 million or 9.0% compared to the year ago period, and increased $83 million or 4.2% on a linked-quarter basis. Similarly, Customer Relationship Deposits were up $136 million or 9.2% year-over-year and increased $70 million or 4.5% on a linked-quarter basis. The Company defines customer relationship deposits to include core banking accounts such as checking, money market, and savings but excluding all wholesale or brokered deposits and CD’s greater than $100,000. Return on Equity was 13.54% and Return on Tangible Equity was 23.06% for the third quarter of 2007 and Return on Assets was 1.69%.

“In an environment of slowing real estate activity that triggered recent turmoil on Wall Street, Cascade continued to deliver solid financial results,” said Patricia L. Moss, President and CEO. “I am pleased to report the Company does not have direct exposure to the highly publicized sub-prime mortgage issues because it neither originated nor purchased such assets in its loan or investment portfolios.” She added, “The Company has strong capital and reserves as we manage through this real estate downturn, and I am optimistic that we are well positioned to capitalize on growth opportunities once this cycle has run its course. “

STOCK REPURCHASE PROGRAM

On August 13, 2007, the Company announced that the Board of Directors approved a stock repurchase program of up to 5% of the Company's issued and outstanding common shares. Purchases will occur at management’s discretion over a two-year period. At September 30, 2007, the Company has acquired 53,900 shares (or about 4% of the shares approved for possible repurchase) at an average price per share of $22.37 totaling $1.2 million.

LOAN GROWTH AND CREDIT QUALITY:

At September 30, 2007, Cascade’s Loan Portfolio was $2.0 billion, up 9.0% compared to the year ago period and up $82.5 million or 4.2% on a linked-quarter basis. Loan portfolio growth was primarily in construction related credits along with higher commercial and industrial loans outstanding.

As expected for the quarter ended September 30, 2007, credit metrics trended higher from their historic lows of 2006. Net loan charge-offs were $1.6 million or 0.32% (annualized) of total loans for the quarter compared to 0.10% (annualized) for the linked-quarter. There was no concentration of charge-offs as to amount, loan type, or geographic location. Also, the quarter saw a modest uptick in consumer related loan charge-offs. Meanwhile, delinquent loans greater than 30 days past due were stable at 0.09% of total loans, compared to 0.11% for the linked-quarter. Non-performing assets (NPA’s) were also higher at $21.0 million as of September 30, 2007, or 0.89% of assets compared to $9.4 million or 0.41% of assets for the linked-quarter. The increase in NPA’s was mainly residential construction credits in the Boise, Idaho market which has experienced some slowing in new home sales¹ .

___________________________

1	For public information as to real estate metrics in Cascade’s markets, see the Company’s Investor Presentation dated Sept 1, 2007 at www.botc.com/investor relations.

The Reserve for Credit Losses (reserve for loan losses and unfunded commitments) was a sturdy 1.37% of total loans at September 30, 2007, compared to 1.43% for the prior quarter and 1.39% a year ago. Cascade’s loan loss provision was $1.75 million for the third quarter of 2007, up from $1.0 million for the linked-quarter but below the $2.2 million provision in the year ago period. Cascade’s credit reserves remain strong compared to the average of its peer banks and management believes such reserves are at an appropriate level based upon its analysis and assessment of portfolio credit quality and prevailing economic conditions.

DEPOSIT GROWTH:

At September 30, 2007, Customer Relationship deposits were up 9.2% compared to a year ago and increased 4.5% on a linked-quarter basis. The majority of the linked-quarter growth was from the Idaho and Portland markets, including strong deposit inflows to our new corporate money market sweep product for select business customers. For the third quarter of 2007, average non-interest bearing deposits were stable at $476.7 million compared to the linked quarter. However, current quarter average non-interest bearing deposits were $89.1 million or 15.7% below the average of the same quarter a year ago mainly due to the contraction of real estate related activity in Cascade markets. Total Deposits were $1.8 billion, up 10.0% compared to a year ago and flat on a linked-quarter basis.

NET INTEREST MARGIN & INTEREST RATE RISK:

Cascade’s Net Interest Margin (NIM) eased modestly to 5.24% for the third quarter of 2007, down 10 basis points from the linked-quarter, primarily due to a decrease in yields on earning assets.

Yields on earning assets during the third quarter of 2007 were lower at 8.29% compared to 8.39% in the linked-quarter quarter and up from 8.22% in the year ago quarter. Lower yields were a result of the Federal Reserve’s action to reduce short term fed funds rate by 50 basis points late in the quarter and the effect of interest adjustments with respect to non performing loans.

The average cost of funds paid on interest bearing liabilities was stable during the third quarter of 2007 at 4.11% as compared to 4.09% in the linked-quarter but up from 3.64% for the year ago quarter. This year over year increase was primarily due to an increase in both volume and rates paid on interest bearing deposits, partially offset by a decrease in borrowings.

Looking forward, management expects the NIM will initially ease between five and 10 basis points in the coming quarter as a result of the interest rate reduction enacted by the Federal Reserve on September 18, 2007. The NIM may be further affected by competitive pricing pressures, yield curve shape and changes in LIBOR credit spreads, all of which can affect both rate and mix of loans, deposits and funding sources.

The NIM can also be affected by factors beyond market interest rates, including loan or deposit volume shifts and/or aggressive rate offerings by competitor institutions. Cascade’s financial model indicates a relatively modest interest rate risk profile within a reasonable range of rate movements around the forward rates currently predicted by financial markets. Because of its relatively high proportion of non-interest bearing funds, Cascade’s NIM is most adversely affected in the event short term market rates fall to a very low level. See cautionary “Forward Looking Statements” below and in Cascade’s Form 10-K report for further information on risk factors including interest rate risk.

NON-INTEREST INCOME AND EXPENSE:

Non-Interest Income was $5.2 million, essentially flat compared to the linked-quarter and down 10.2% from the third quarter of 2006. The year over year decline is partially the result of reduced mortgage origination volume and related revenue owing to the slowing pace of real estate activity as well as a reduced level of gain on sale of investment securities compared to the year ago period. For the third quarter of 2007, residential mortgage originations totaled $38.8 million, down 23.0% from the year ago period and down 24.6% from the linked-quarter. Related net mortgage revenue was $.6 million, down from $.9 million in the year ago period and compared to $.8 million for the prior quarter.

Non-Interest Expense for the third quarter of 2007 was at a level comparable to the immediately preceding quarter, but up 4.5% compared to the third quarter of 2006. The year over year increase was primarily due to higher human resources costs in support of Cascade’s ongoing growth and infrastructure investments.

BUSINESS STRATEGY:

Operating in some of the fastest growing markets in the nation, Cascade Bancorp (headquartered in Bend, Oregon) and its wholly-owned subsidiary, Bank of the Cascades, operates in Oregon and Idaho markets. In terms of banking growth markets, Cascade ranks as the top community bank footprint in the Northwest and among the top ten banks in the nation² . Cascade has a business strategy that focuses on delivering the best in community banking for the financial well-being of customers and shareholders. The Bank implements its strategy by combining outstanding service, competitive financial products, local expertise and advanced technology applied for the convenience of customers. Founded in 1977, Bank of the Cascades offers full-service community banking through 33 branches in Central Oregon, Southern Oregon, Portland/Salem and Boise/Treasure Valley. The Bank has been rated among the top performing banks in the nation for the ninth consecutive year by Independent Community Bankers of America, as well as being named the 2007 top community bank in the Northwest by US Banker Magazine. The Bank is honored to be among the top 40 "Best 100 Companies to Work For in Oregon, 2007," compiled by Oregon Business Magazine. For further information on Bank of the Cascades, please visit our web site at http://www.botc.com.

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which Cascade is conducting its operations. For a discussion of factors, which could cause results to differ, please see Cascade's reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission and Cascade's press releases. When used in this release, the words or phrases such as "will likely result in", "management expects that", "will continue", "is anticipated", "estimate", "projected", or similar expressions, are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Cascade undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. This statement is included for the express purpose of protecting Cascade Bancorp and PSLRA's safe harbor provisions.

The ability of Cascade to predict results or the actual effect of future plans and strategies is uncertain, and actual results may differ. You can obtain documents filed by Cascade free of charge at the website maintained by the SEC at www.sec.gov. In addition, you may obtain documents filed with the SEC by Cascade Bancorp free of charge by contacting: Investor Relations, Cascade Bancorp, 1100 NW Wall St., PO Box 369, Bend, OR 97701 (541) 385-6205.

# # #

___________________________

	Year over Year									Linked Quarter
	3rd Qtr			3rd Qtr			%			3rd Qtr			2nd Qtr			%
Balance Sheet Data (at period end)	2007			2006			Change			2007			2007			Change
Investment securities	$	97,857		$	126,257			-22.5	%	$	97,857		$	104,474			-6.3	%
Loans, gross		2,041,573			1,872,225			9.0	%		2,041,573			1,959,031			4.2	%
Total assets		2,403,717			2,245,364			7.1	%		2,403,717			2,321,103			3.6	%
Total deposits		1,792,301			1,629,581			10.0	%		1,792,301			1,785,649			0.4	%
Non-interest bearing deposits		471,140			555,101			-15.1	%		471,140			479,649			-1.8	%
Customer relationship deposits (1)		1,612,950			1,476,626			9.2	%		1,612,950			1,543,418			4.5	%
Total shareholders' equity (book)		284,737			252,408			12.8	%		284,737			276,901			2.8	%
Total shareholders' equity (tangible)		169,793			135,787			25.0	%		169,793			161,562			5.1	%
Income Statement Data (2)
Interest income	$	43,956		$	40,329			9.0	%	$	43,956		$	43,319			1.5	%
Interest expense		16,232			12,347			31.5	%		16,232			15,775			2.9	%
Net interest income		27,724			27,982			-0.9	%		27,724			27,544			0.7	%
Loan loss provision		1,750			2,200			-20.5	%		1,750			1,000			75.0	%
Net interest income after loan loss provision		25,974			25,782			0.7	%		25,974			26,544			-2.1	%
Noninterest income		5,198			5,789			-10.2	%		5,198			5,273			-1.4	%
Noninterest expense		15,319			14,658			4.5	%		15,319			15,549			-1.5	%
Income before income taxes		15,853			16,913			-6.3	%		15,853			16,268			-2.6	%
Provision for income taxes		5,835			6,393			-8.7	%		5,835			6,087			-4.1	%
Net income	$	10,018		$	10,520			-4.8	%	$	10,018		$	10,181			-1.6	%
Share Data
Basic earnings per common share	$	0.35		$	0.37			-5.5	%	$	0.35		$	0.36			-1.6	%
Diluted earnings per common share	$	0.35		$	0.37			-4.6	%	$	0.35		$	0.36			-6.7	%
Book value per common share	$	10.06		$	8.92			12.8	%	$	10.06		$	9.79			2.8	%
Tangible book value per common share	$	6.00		$	4.80			25.0	%	$	6.00		$	5.71			5.1	%
Cash dividends declared per common share	$	0.09		$	0.07			28.6	%	$	0.09		$	0.09			0.0	%
Ratio of dividends declared to net income		25.46	%		19.25	%		32.3	%		25.46	%		25.05	%		1.6	%
Basic Average shares outstanding		28,340			28,125			0.8	%		28,340			28,335			0.0	%
Fully Diluted average shares outstanding		28,673			28,711			-0.1	%		28,673			28,651			0.1	%
Key Ratios
Return on average total shareholders' equity (book)		13.54	%		17.03	%		-20.5	%		13.54	%		14.07	%		-3.8	%
Return on average total shareholders' equity (tangible) (3)		23.06	%		32.52	%		-29.1	%		23.06	%		24.50	%		-5.9	%
Return on average total assets		1.69	%		1.91	%		-11.5	%		1.69	%		1.76	%		-4.0	%
Net interest spread		4.18	%		4.58	%		-8.7	%		4.18	%		4.30	%		-2.8	%
Net interest margin		5.24	%		5.71	%		-8.2	%		5.24	%		5.34	%		-1.9	%
Total revenue (net int inc + non int inc)	$	32,922		$	33,771			-2.5	%	$	32,922		$	32,817			0.3	%
Efficiency ratio (4)		46.53	%		43.40	%		7.2	%		46.53	%		47.38	%		-1.8	%
Credit Quality Ratios
Reserve for credit losses		27,955			26,089			7.2	%		27,955			28,010			-0.2	%
Reserve to ending total loans		1.37	%		1.39	%		-1.4	%		1.37	%		1.43	%		-4.2	%
Non-performing assets (5)		21,474			1,838			1068.3	%		21,474			9,401			128.4	%
Non-performing assets to total assets		0.89	%		0.08	%		1012.5	%		0.89	%		0.41	%		117.1	%
Delinquent >30 days to total loans		0.09	%		0.09	%		0.0	%		0.09	%		0.11	%		-18.2	%
Net Charge off's		1,554			364			326.9	%		1,554			465			234.2	%
Net loan charge-offs (annualized)		0.32	%		0.08	%		300.0	%		0.32	%		0.10	%		220.0	%
Mortgage Activity
Mortgage Originations	$	38,810		$	50,371			-23.0	%	$	38,810		$	51,469			-24.6	%
Total Servicing Portfolio (sold loans)	$	493,638		$	496,120			-0.5	%	$	493,638		$	494,796			-0.2	%
Capitalized Mortgage Servicing Rights (MSR's)	$	3,841		$	4,196			-8.5	%	$	3,841		$	3,939			-2.5	%
Capital Ratios
Average shareholders' equity to average assets		11.85	%		11.21	%		5.7	%		11.85	%		11.68	%		1.5	%
Leverage ratio (6) (Est Q3-07)		10.52	%		9.73	%		8.1	%		10.52	%		10.30	%		2.1	%
Total risk-based capital ratio (6) (Est Q3-07)		11.58	%		10.90	%		6.2	%		11.58	%		11.59	%		-0.1	%

CASCADE BANCORP (CACB)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

	Year over Year								Linked Quarter
	3rd Qtr		3rd Qtr			%			2nd Qtr			%
	2007		2006			Change			2007			Change
Interest income:
Interest and fees on loans	$	42,547	$	38,600			10.2	%	$	41,731			2.0	%
Taxable interest on investments		1,290		1,577			-18.2	%		1,340			-3.7	%
Nontaxable interest on investments		66		84			-21.4	%		76			-13.2	%
Interest on federal funds sold		41		62			-33.9	%		51			-19.6	%
Interest on interest bearing balances from FHLB		1		6			-83.3	%		111			-99.1	%
Dividends on Federal Home Loan Bank stock		11		-			100.0	%		10			10.0	%
Total interest income		43,956		40,329			9.0	%		43,319			1.5	%

Interest expense:
Deposits:
Interest bearing demand		8,388		5,486			52.9	%		7,338			14.3	%
Savings		49		66			-25.8	%		51			-3.9	%
Time		4,369		2,619			66.8	%		4,374			-0.1	%
Junior subordinated debentures and other borrowings		3,426		4,176			-18.0	%		4,012			-14.6	%
Total interest expense		16,232		12,347			31.5	%		15,775			2.9	%

Net interest income		27,724		27,982			-0.9	%		27,544			0.7	%
Loan loss provision		1,750		2,200			-20.5	%		1,000			75.0	%
Net interest income after loan loss provision		25,974		25,782			0.7	%		26,544			-2.1	%

Noninterest income:
Service charges on deposit accounts		2,597		2,366			9.8	%		2,492			4.2	%
Mortgage loan origination and processing fees		423		556			-23.9	%		504			-16.1	%
Gains on sales of mortgage loans, net		183		339			-46.0	%		257			-28.8	%
Net mortgage loan servicing fees		23		(16	)		-243.8	%		(11	)		-309.1	%
Gains on sales of investment securities AFS		260		594			-56.2	%		-			100.0	%
Card issuer and merchant services fees, net		1,038		1,077			-3.6	%		1,063			-2.4	%
Earnings on bank-owned life insurance		140		202			-30.7	%		385			-63.6	%
Other income		534		671			-20.4	%		583			-8.4	%
Total noninterest income		5,198		5,789			-10.2	%		5,273			-1.4	%

Noninterest expense:
Salaries and employee benefits		8,925		8,680			2.8	%		9,123			-2.2	%
Occupancy & Equipment		1,725		1,551			11.2	%		1,652			4.4	%
Communications		491		500			-1.8	%		472			4.0	%
Advertising		330		235			40.4	%		313			5.4	%
Other expenses		3,848		3,692			4.2	%		3,989			-3.5	%
Total noninterest expense		15,319		14,658			4.5	%		15,549			-1.5	%

Income before income taxes		15,853		16,913			-6.3	%		16,268			-2.6	%
Provision for income taxes		5,835		6,393			-8.7	%		6,087			-4.1	%
Net income	$	10,018	$	10,520			-4.8	%	$	10,181			-1.6	%

Basic net income per common share	$	0.35	$	0.37			-5.5	%	$	0.36			-1.6	%
Diluted net income per common share	$	0.35	$	0.37			-4.6	%	$	0.36			-1.7	%

CASCADE BANCORP (CACB)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(unaudited)

	Year over Year							Linked Quarter
	3rd Qtr		3rd Qtr		%			2nd Qtr		%
	2007		2006		Change			2007		Change
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	60,363	$	64,210		-6.0	%	$	58,707		2.8	%
Interest bearing balances due from FHLB		72		96		-25.0	%		167		-56.9	%
Federal funds sold		807		722		11.8	%		469		72.1	%
Total cash and cash equivalents		61,242		65,028		-5.8	%		59,343		3.2	%
Investment securities available-for-sale		94,675		122,559		-22.8	%		101,989		-7.2	%
Investment securities held-to-maturity		3,182		3,698		-14.0	%		2,485		28.0	%
Federal Home Loan Bank stock		6,991		6,785		3.0	%		6,991		0.0	%
Loans, net		2,016,781		1,846,136		9.2	%		1,934,434		4.3	%
Premises and equipment, net		38,878		40,674		-4.4	%		36,935		5.3	%
Goodwill		105,047		105,144		-0.1	%		105,047		0.0	%
Core deposit intangible		9,897		11,477		-13.8	%		10,292		-3.8	%
Bank-owned life insurance		32,713		17,967		82.1	%		32,573		0.4	%
Accrued interest and other assets		34,311		25,896		32.5	%		31,014		10.6	%
Total assets	$	2,403,717	$	2,245,364		7.1	%	$	2,321,103		3.6	%

LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	471,140	$	555,101		-15.1	%	$	479,649		-1.8	%
Interest bearing demand		949,162		757,737		25.3	%		870,264		9.1	%
Savings		41,142		57,108		-28.0	%		40,624		1.3	%
Time deposits		330,857		259,635		27.4	%		395,112		-16.3	%
Total deposits		1,792,301		1,629,581		10.0	%		1,785,649		0.4	%
Junior subordinated debentures		68,558		68,558		0.0	%		68,558		0.0	%
Federal funds purchased		15,035		10,000		50.4	%		4,905		206.5	%
Other borrowings		200,799		213,237		-5.8	%		139,705		43.7	%
Customer repurchase agreements		16,581		49,198		-66.3	%		20,784		-20.2	%
Accrued interest and other liabilities		25,706		22,382		14.9	%		24,601		4.5	%
Total liabilities		2,118,980		1,992,956		6.3	%		2,044,202		3.7	%

Stockholders' equity:
Common stock, no par value;		164,201		161,585		1.6	%		164,046		0.1	%
Retained earnings		120,149		90,435		32.9	%		112,695		6.6	%
Unrealized gains on investment securities
available-for-sale, net of deferred income taxes		387		388		-0.3	%		160		141.9	%
Total stockholders' equity		284,737		252,408		12.8	%		276,901		2.8	%
Total liabilities and stockholders' equity	$	2,403,717	$	2,245,364		7.1	%	$	2,321,103		3.6	%

Oregon	0-23322	93-1034484
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer Identification No.)
incorporation or organization)

		CASCADE BANCORP


	By:	/s/ Gregory D. Newton
		Gregory D. Newton
		Executive Vice President/ Chief Financial Officer/Secretary

			% of					% of					% of
			gross					gross					gross
Loan portfolio	9/30/2007		loans			6/30/2007		loans			12/31/2006		loans
Commercial	$	614,509		30	%	$	592,164		30	%	$	560,728		30	%
Real Estate:
Construction/lot		689,500		34	%		629,197		32	%		588,251		31	%
Mortgage		86,490		4	%		83,796		4	%		80,860		4	%
Commercial		601,474		30	%		603,804		31	%		606,340		32	%
Consumer		49,600		2	%		50,070		3	%		51,083		3	%
Total loans		2,041,573		100	%		1,959,031		100	%		1,887,262		100	%
Less reserve for loan losses		24,792					24,597					22,612
Total loans, net	$	2,016,781				$	1,934,434				$	1,864,650

	Three months ended September 30,
	2007			2006
Reserve for loan losses:
Balance at beginning of period	$	24,597		$	20,776
Loan loss provision		1,750			2,200
Recoveries		288			163
Loans charged off		(1,843	)		(527	)
Balance at end of period	$	24,792		$	22,612

Reserve for unfunded commitments:
Balance at beginning of period	$	3,413		$	3,477
Provision (credit) for unfunded commitments		(250	)	$	96
Balance at end of period	$	3,163		$	3,573

Reserve for credit losses:
Reserve for loan losses	$	24,792		$	22,612
Reserve for unfunded commitments		3,163			3,573
Total reserve for credit losses	$	27,955		$	26,185

	Year over Year							Linked Quarter
	3rd Qtr		3rd Qtr		%			2nd Qtr		%
Three Months Ended:	2007		2006		Change			2007		Change

Average Assets	$	2,354,256	$	2,186,609		7.7	%	$	2,323,973		1.3	%
Average Loans		1,997,010		1,809,905		10.3	%		1,949,480		2.4	%
Average Deposits		1,802,099		1,600,041		12.6	%		1,729,424		4.2	%
Average Investment Securities		101,244		129,536		-21.8	%		107,821		-6.1	%
Average Other Earning Assets		10,507		11,745		-10.5	%		19,163		-45.2	%
Average Non Interest Bearing Deposits		476,707		565,757		-15.7	%		474,598		0.4	%
Average Customer Relationship Deposits		1,584,492		1,476,905		7.3	%		1,493,336		6.1	%
Average Earnings Assets		2,108,761		1,951,186		8.1	%		2,076,464		1.6	%
Average Interest Bearing Liabilities		1,567,474		1,345,386		16.5	%		1,548,405		1.2	%
Average Borrowings		242,082		311,102		-22.2	%		293,568		-17.5	%
Average Common Equity (book)		278,995		245,072		13.8	%		271,437		2.8	%
Average Common Equity (tangible)		163,816		128,342		27.6	%		155,859		5.1	%

	September 30,		September 30,		%			December 31,		%
Balances as of:	2007		2006		Change			2006		Change

Mortgage loans held for sale	$	1,748	$	4,297		-59.3	%		2,673		-34.6	%
Intangibles & goodwill		114,944		116,621		-1.4	%		115,743		-0.7	%

Loans past due >90 days, not on non-accrual		52		-		100.0	%		-		100.0	%
Loans on non-accrual status		21,046		1,471		1330.7	%		7,651		175.1	%
Total non-performing Loans		21,098		1,471		1334.3	%		7,651		175.8	%
OREO		376		367		2.5	%		-		100.0	%
Total Non-performing assets		21,474		1,838		1068.3	%		7,651		180.7	%

Shares Outstanding (actual)		28,298		28,288		0.0	%		28,446		-0.5	%