8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): January 29, 2009

CASCADE BANCORP

(Exact name of Registrant as specified in its charter)

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

1100 NW Wall Street

Bend, Oregon 97701

(Address of principal executive offices)

(Zip Code)

(541) 385-6205

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K file is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02         RESULTS OF OPERATIONS AND FINANCIAL CONDITION

                            On January 29, 2009, Cascade Bancorp announced by press release its financial results for the fourth quarter and full year of 2008, including certain forward looking statements.  A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated by reference.

ITEM 9.01         FINANCIAL STATEMENTS AND EXHIBITS

  (a)         Financial Statements of Business Acquired

 Not applicable.

  (b)         Prof Forma Financial Information

 Not applicable.

  (c)         Shell Company Transactions

 Not applicable.

  (d)         Exhibits

 Exhibit 99.1 Press Release dated January 29, 2009.

SIGNATURE

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, thereto duly authorized.

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

Date: January 29, 2009

EX-99.1

January 29, 2009

NEWS RELEASE

FOR IMMEDIATE RELEASE

CONTACT:	Gregory D. Newton, EVP, Chief Financial Officer, Cascade Bancorp
	(541) 617-3526
	Patricia L. Moss, President & Chief Executive Officer, Cascade Bancorp
	(541) 385-6205

CASCADE BANCORP (OREGON) ANNOUNCES SIGNIFICANT LOAN LOSS PROVISION FOR THE FOURTH QUARTER RESULTING IN A NET LOSS OF ($0.76) PER SHARE FOR THE FULL YEAR 2008 AND ($0.86) PER SHARE FOR THE FOURTH QUARTER. THE COMPANY REMAINS ‘WELL-CAPITALIZED’ AT 10.70% RISKED BASED CAPITAL RATIO DESPITE THE CHALLENGING ECONOMIC ENVIRONMENT

· Full Year 2008 Net Loss Per Share: at ($0.76) per share or ($21.2) million compared to earnings of $1.05 per share and $30.0 million net income in 2007.

· Fourth Quarter 2008 Net Loss Per Share: at ($0.86) per share or ($24.2) million compared to earnings of $0.01 per share and $0.3 million net income, respectively for the year ago quarter.

· Capital Ratio: exceeds “well capitalized” regulatory designation at 10.70% risk based capital.

· Fourth Quarter Provision for Loan Losses:  at $46.5 million with net charge-offs of $41.1 million; year–end reserve for credit losses at $56.2 million or 2.84% of total loans.

· Total Loans: down 3.1% year-over-year and down 3.4% on a linked-quarter basis.

· Total Deposits: up 7.6% year-over-year, and up 2.1% on a linked-quarter basis.

· Net Interest Margin: at 4.09% (4.42% as adjusted for interest reversals) compared to 4.42% linked quarter.

· Cash Dividend:  Board of Directors omit dividend for current quarter; was $.01 in prior quarter

FINANCIAL PERFORMANCE:

BEND, Ore, January 29/PRNewswire-First Call/--Cascade Bancorp (“Cascade”) (NASDAQ: CACB) reported 2008 full year Net Loss of($0.76) per share or ($21.2 million) compared to net income of $1.05 per share and $30.0 million in 2007.  The Company recorded a $46.5 million (pre-tax) provision for credit losses for the fourth quarter of 2008 bringing the full year 2008 provision to $84.8 million versus $19.4 million in 2007.  The provision was largely related to valuation adjustments on real estate collateral underpinning certain non-performing residential land development and construction loans, necessitating  $41.1 million in charge-offs to write down such properties to estimated fair market value.  Also, as a result of the increased loan loss provision the Company’s reserve for credit losses rose to approximately $56.2 million or 2.84% of gross loans at December 31, 2008.  Despite the significant provision and net loss, the Company’s capital exceeds the “well capitalized” regulatory designation at 10.70% total risk based capital.

Commenting on the Company’s results, Patricia L. Moss, CEO said “The severity of the economic downturn has continued to impact and challenge communities, businesses and individuals across our country.  Focusing on that which we can control and effect, management at Bank of the Cascades is working diligently to respond to adversity by aggressively identifying and addressing current challenges.  These circumstances have necessitated our recording a large loan loss provision in order to account for writes-downs on collateral underlying challenged loans, as well as to build our reserve for loan losses.  I am appreciative of our established financial strengths and gratified that we are able to take these actions and remain ‘well-capitalized’ by all regulatory benchmarks.  Specifically, we have written-down a substantial portion of the residential development loan portfolio that has proven to be the most negatively effected by the downturn.  At the same time we are working diligently to assess and mitigate credit quality risk in our other portfolios and to minimize the impact where possible.”

CASH DIVIDEND:

In view of the present adverse and uncertain economic conditions and consistent with the Company’s dividend policy wherein quarterly cash dividends are to be paid from current earnings, the Board of Directors accordingly has decided to omit the quarterly cash dividend at this time.  The cash dividend in the prior quarter was $.01 per share.  Said Moss, “Omitting our cash dividend is an appropriate action consistent with our prudent dividend policy.  For over thirty years, Bank of the Cascades has been honored to be an integral part of the economic prosperity of the markets we serve.  As we navigate through this downturn, Cascade bankers are focused on the financial safety and success of our customers.  We pledge to continue our tireless effort and dedication to manage through these difficult times to the benefit of our customers, our communities, and ultimately the loyal shareholders of the Company.”

LOAN PORTFOLIO AND CREDIT QUALITY:

At December 31, 2008, Cascade’s Loan Portfolio was $1.98 billion, down 3.1% as compared to a year-ago and down 3.4% on a linked-quarter basis.  Management believes that overall loan growth will likely remain muted until such time as the economic downturn runs its course.  The Bank’s residential development loans continue to be the most negatively effected by the downturn including several relatively large credits in both Idaho and Central Oregon being classified as non performing during the fourth quarter, necessitating write-downs to estimated fair value and prompting the significant provision and charge-offs discussed above.

At December 31, 2008, loans delinquent >30 days were at 0.33% of total loans compared to 0.21% for the linked-quarter and 0.47% at year-end 2007.  This compares favorably to peer banks whose average delinquency rates were 0.89% at prior quarter end. At December 31, 2008 the delinquency rate in our commercial real estate (CRE) portfolio was just 0.40%.  CRE loans represent the largest portion of Cascade’s portfolio at 36% of total loans.  Delinquencies in our commercial loan portfolio were just 0.36%; this portfolio represents 30% of total loans.  These statistics are one indication that most of the Company’s total loans are performing well despite the economic conditions.

Non-performing loans (NPL’s) increased to $140.7 million in the fourth quarter of 2008 mainly due to several large residential development project loans where the Bank determined that, more likely than not, certain borrowers would be unable to repay principal and interest according to the contractual terms of their loans.  Upon such determination the Bank promptly charges down the balance of such loans to estimated fair value.  NPL’s represented 5.9% of total assets at December 31, 2008 and compares with 4.5% for prior quarter and 1.9% a year ago.  Net loan charge-offs for the quarter were $41.1 million arising mainly from deteriorating market prices for collateral dependent non-performing loans.  This compares with $8.2 million in net charge-offs in the prior quarter and $6.5 million for the year ago quarter.

Other Real Estate Owned (OREO) represents real estate loan collateral now owned by the Bank which is carried at approximate estimated fair value of $53.5 million at December 31, 2008 as compared to $37.2 million in the prior quarter.  The OREO balance is net of a fourth quarter 2008 OREO valuation charge of $4.2 million that is accounted for as non-interest expense (see below).  OREO is largely residential development or construction related properties.  Note that this amount excludes a $13.8 million performing OREO commercial building because tenant revenues exceed the interest income previously received on the underlying loan.

Non-performing assets (NPA’s) include NPL’s plus non-performing OREO properties as discussed above.  NPA’s total $180.4 million or 7.6% of total assets compared to $109.1 million or 4.5% of total assets for the linked-quarter.  The Company carries NPA’s at the estimated fair value; however, because of the uncertain real estate market, forward assurances cannot be given as to the timing of ultimate disposition of such assets or that selling price will be at or above carrying fair value.  The orderly resolution of non-performing loans and OREO properties is a priority for management.  See the accompanying table for distribution of loans and NPA’s by region and loan type.

At December 31, 2008 the total reserve for credit losses was $56.2 million or 2.84% of total loans.  Management believes the reserve for credit losses is at an appropriate level based on evaluation and analysis of portfolio credit quality in conjunction with prevailing economic conditions and estimated fair values of collateral supporting non performing loans.  With uncertainty as to the depth and duration of the real estate slowdown and its economic effect on the communities within Cascades’ banking markets, forward assurances cannot be given that the reserve will be adequate in future periods or that the level of NPA’s will subside.  Further provisioning and charge-offs may be required before values stabilize.

DEPOSITS:

Customer Relationship Deposits1 increased slightly during the fourth quarter to $1.4 billion or 1.4% at December 31, 2008, as compared to the linked-quarter and is down 8.7% when compared to a year-ago.  The year-over-year decline is predominately a result of the economic downturn’s direct negative effect on retail and business customer cash available to deposit in their bank. Consistent efforts to retain and serve customers have proven successful with total customer numbers remaining consistent.  To provide additional customer assurances, the Company has chosen to participate in the FDIC’s temporary 100% guarantee of non-interest bearing checking accounts, including NOW accounts paying less than 0.50%. Additionally, under recent changes from the FDIC, all interest bearing deposit accounts are insured up to $250,000 through 12/31/2009.  Total Deposits were $1.8 billion at December 30, 2008, up 7.6% compared to a year-ago and up 2.1% on a linked-quarter basis as the bank accessed the brokered time deposit market to augment aggregate deposits.  Note that Cascade’s proportion of more expensive time deposits to total deposits continues to remain well below its peer banks because of its focus on relationship deposits.

1 Customer relationship deposits include core deposit transaction accounts such as checking, money market and savings, while excluding all wholesale or brokered deposits and time deposits greater than $100,000.

NET INTEREST MARGIN & INTEREST RATE RISK:

The Net Interest Margin (NIM) for the fourth quarter was 4.09%. However, excluding the effect of interest reversed on loans placed into non-performing status during the current quarter, the NIM as adjusted was 4.42%, comparable to the linked-quarter.  The overall cost of funds was at 1.71% for the fourth quarter of 2008, down from 1.90% from the prior quarter.  Yields on earning assets during the fourth quarter of 2008 were 5.77% compared to 6.28% in the linked-quarter and down from 7.86% in the year ago quarter.  The year-over-year and linked-quarter decline in yields were mainly a result of declining market rates as well as the effect of interest forgone and reversed on non-performing loans. The average rate paid on interest bearing liabilities was 2.10% for the current quarter down 2.35% for the linked-quarter and is below the 3.84% for the year ago quarter due to declining rate environment.

Because one of Cascade’s strengths is its relatively high proportion of non-interest bearing deposits, lower market interest rates tend to compress the Company’s NIM as yields decline against an already low cost of funds.  This effect should reverse once the economy rebounds.  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 for the fourth quarter of 2008 was $3.7 million compared to the year-ago quarter of $5.1 million and $5.5 million for the linked-quarter.  The linked-quarter non-interest income benefited from a non- recurring gain on sale of securities which accounts for about half of the period-to-period decline.  In addition, the fourth quarter includes a $0.7 million fair value adjustment of investments underlying bank owned life insurance policies whose prices have been adversely impacted by the uncertain state of national credit markets (see next paragraph).  Bank service and other fee income categories were generally flat.

Cascade’s residential mortgage origination volume was down 45.3% from the year-ago period at $20.1 million for the quarter, and compares to the linked quarter volume of $21.3 million.  Lower originations caused net mortgage related revenues to decline to $0.3 million in the last two quarters, or about half the $0.6 million recorded for the year-ago period.  Note that the Company has focused on originating appropriately underwritten conventional mortgage products throughout its history while purposefully avoiding sub-prime / option-ARM type products.  As a result, the delinquency rate within Cascade’s $512 million portfolio of serviced residential mortgage loans is only 1.10% at December 31, 2008, significantly below the national mortgage delinquency rate of 6.99% at September 30, 2008.  The fair value of servicing portfolio is estimated to exceed book value by amounts ranging from $0.5 million to $1.4 million.   Mortgage refinance activity at Bank of the Cascades is up meaningfully in early 2009 in response to lower mortgage rates in concert with FRB and Treasury efforts to unfreeze mortgage markets.

Largely because of OREO valuation write-downs totaling $4.2 millionin the fourth quarter of 2008, Non-Interest Expense (NIE) increased 24.0% compared to the prior year period and 42.2% on a linked-quarter basis.  The as adjusted run rate for normalized non-interest expense during the fourth quarter 2008 was up modestly from the linked-quarter at approximately $16.1 million (see table below).  Note that in context of the reported annual loss, the Company has made the decision to pay no 2008 bonuses.  In addition, the Company has announced that there will be no executive salary increases effective in 2009.

(dollars in thousands)	4th Qtr 2008			4th Qtr 2007		% Change			3rd Qtr 2008			% Change
As reported	$	19,638		$	15,840		24.0	%	$	13,809			42.2	%
Reversal of bonuses		2,317			N/A		N/A			-			N/A
OREO write-downs		(4,182	)		N/A		N/A			(189	)		N/A
Adj to reserve for unfunded commitments		-			N/A		N/A			2,124			N/A
Disposal of leasehold improvements		(500	)		N/A		N/A			-			N/A
Taxes and other OREO expenses		(1,142	)		N/A		N/A			(209	)		N/A
As adjusted	$	16,131		$	15,840		1.8	%	$	15,535			3.8	%

About Cascade Bancorp and Bank of the Cascades

Cascade Bancorp (NASDAQ: CACB), headquartered in Bend, Oregon and its wholly-owned subsidiary, Bank of the Cascades, operates in Oregon and Idaho markets.  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 a business strategy that focuses on delivering the best in community banking for the financial well-being of customers and shareholders. It executes it strategy through the consistent delivery of full relationship banking focused on attracting and retaining value driven customers. Over the past decade, the Bank has been rated repeatedly recognized among its peers nationwide for financial performance. In December 2008, Bank of the Cascades was named by the Portland Business Journal as one of Oregon’s Most Admired Companies in the Financial Services category, as chosen by Oregon CEOs. For further information, 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 that could cause actual results to differ materially from those expressed or implied by such forward looking statements. Such risks and uncertainties may include but are not necessarily limited to general and local economic conditions, including the residential and commercial real estate markets; changes in interest rates, including timing or relative degree of change; inflation; credit quality and concentrations; competition within the business areas in which Cascade is conducting its operations; changes in regulatory conditions or requirements or new legislation; and changes in accounting policies.  These statements include, among others, statements related to future profitability levels and future earnings.   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 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. 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.

#     #     #

CASCADE BANCORP

Selected Consolidated Financial Highlights

(In thousands, except per share data and ratios; unaudited)

	Year over Year Quarter									Linked Quarter									Full Year over Full Year
	4th Qtr 2008			4th Qtr 2007			% Change			4th Qtr 2008			3rd Qtr 2008			% Change			2008			2007			% Change
Balance Sheet Data (at period end)
Investment securities	$	109,690		$	87,015			26.1	%	$	109,690		$	84,647			29.6	%	$	109,690		$	87,015			26.1	%
Loans, gross		1,979,066			2,041,478			-3.1	%		1,979,066			2,049,695			-3.4	%		1,979,066			2,041,478			-3.1	%
Total assets		2,372,486			2,394,492			-0.9	%		2,372,486			2,410,535			-1.6	%		2,372,486			2,394,492			-0.9	%
Total deposits		1,794,611			1,667,138			7.6	%		1,794,611			1,757,883			2.1	%		1,794,611			1,667,138			7.6	%
Non-interest bearing deposits		364,146			435,503			-16.4	%		364,146			446,470			-18.4	%		364,146			435,503			-16.4	%
Customer relationship deposits (1)		1,430,175			1,566,220			-8.7	%		1,430,175			1,409,819			1.4	%		1,430,175			1,566,220			-8.7	%
Total common shareholders' equity (book) (2)		248,628			275,286			-9.7	%		248,628			272,905			-8.9	%		248,628			275,286			-9.7	%
Tangible common shareholders' equity (tangible) (3)		135,660			160,737			-15.6	%		135,660			159,542			-15.0	%		135,660			160,737			-15.6	%
Income Statement Data
Interest income	$	31,260		$	42,576			-26.6	%	$	31,260		$	34,111			-8.4	%	$	137,772		$	171,228			-19.5	%
Interest expense		9,130			15,886			-42.5	%		9,130			10,146			-10.0	%		42,371			62,724			-32.4	%
Net interest income		22,130			26,690			-17.1	%		22,130			23,965			-7.7	%		95,401			108,504			-12.1	%
Loan loss provision		46,500			15,600			198.1	%		46,500			15,390			202.1	%		84,754			19,400			336.9	%
Net interest income after loan loss provision		(24,370	)		11,090			-319.7	%		(24,370	)		8,575			-384.2	%		10,647			89,104			-88.1	%
Noninterest income		3,713			5,122			-27.5	%		3,713			5,530			-32.9	%		19,753			21,140			-6.6	%
Noninterest expense		19,638			15,840			24.0	%		19,638			13,809			42.2	%		67,585			62,509			8.1	%
Income (loss) before income taxes		(40,295	)		372			-10931.9	%		(40,295	)		296			-13713.1	%		(37,185	)		47,735			-177.9	%
Provision (credit) for income taxes		(16,127	)		113			-14371.3	%		(16,127	)		(51	)		31520.6	%		(16,011	)		17,756			-190.2	%
Net income (loss)	$	(24,168	)	$	259			-9431.3	%	$	(24,168	)	$	347			-7064.9	%	$	(21,174	)	$	29,979			-170.6	%
Share Data
Basic earnings per common share	$	(0.86	)	$	0.01			-9455.7	%	$	0.01		$	0.18			-93.0	%	$	(0.76	)	$	1.06			-171.3	%
Diluted earnings per common share	$	(0.86	)	$	0.01			-9496.1	%	$	0.01		$	0.18			-93.0	%	$	(0.76	)	$	1.05			-172.2	%
Book value per common share	$	8.85		$	9.82			-9.9	%	$	9.85		$	9.87			-0.2	%	$	9.85		$	9.82			0.3	%
Tangible book value per common share	$	4.83		$	5.72			-15.6	%	$	5.82		$	5.83			-0.2	%	$	5.82		$	5.72			1.7	%
Cash dividends paid per common share	$	0.01		$	0.10			-90.0	%	$	0.01		$	0.01			0.0	%	$	0.01		$	0.37			-97.3	%
Ratio of dividends declared to net income		-1.16	%		1082.08	%		-100.1	%		80.54	%		5.67	%		1321.5	%		-1.32	%		34.86	%		-103.8	%
Basic Average shares outstanding		27,953			28,026			-0.3	%		27,947			27,947			0.0	%		27,936			28,243			-1.1	%
Fully Diluted average shares outstanding		28,085			28,280			-0.7	%		28,081			28,078			0.0	%		28,074			28,584			-1.8	%
Key Ratios
Return on average total shareholders' equity (book)		-34.44	%		0.36	%		-9666.7	%		-34.44	%		0.49	%		-7128.6	%		-7.02	%		10.92	%		-164.3	%
Return on average total shareholders' equity (tangible) (2)		-58.03	%		0.61	%		-9613.1	%		-58.03	%		0.81	%		-7264.2	%		-11.79	%		18.83	%		-162.6	%
Return on average total assets		-3.97	%		0.04	%		-10025.0	%		-3.97	%		0.06	%		-6716.7	%		-0.82	%		1.28	%		-164.1	%
Pre-tax pre provision return on average total assets		3.67	%		2.64	%		39.0	%		3.67	%		2.57	%		42.9	%		2.63	%		2.87	%		-8.4	%
Net interest spread		3.67	%		4.02	%		-8.7	%		3.67	%		3.93	%		-6.6	%		3.90	%		4.20	%		-7.1	%
Net interest margin		4.09	%		4.94	%		-17.2	%		4.09	%		4.42	%		-7.5	%		4.44	%		5.21	%		-14.8	%
Total revenue (net int inc + non int inc)	$	25,843		$	31,812			-18.8	%	$	25,843		$	29,495			-12.4	%	$	115,154		$	129,644			-11.2	%
Efficiency ratio (4)		84.11	%		49.79	%		68.9	%		84.11	%		53.94	%		55.9	%		58.69	%		48.22	%		21.7	%
Credit Quality Ratios
Reserve for credit losses		56,248			37,038			51.9	%		56,248			50,890			10.5	%		56,248			37,038			51.9	%
Reserve to ending total loans		2.84	%		1.81	%		56.7	%		2.84	%		2.48	%		14.5	%		2.84	%		1.81	%		56.7	%
Non-performing assets (5)		180,404			55,681			224.0	%		180,404			109,072			65.4	%		180,404			55,681			224.0	%
Non-performing assets to total assets		7.60	%		2.33	%		227.0	%		7.60	%		4.54	%		67.6	%		7.60	%		2.33	%		227.0	%
Delinquent >30 days to total loans		0.33	%		0.47	%		-31.3	%		0.33	%		0.21	%		54.0	%		0.33	%		0.47	%		-31.3	%
Net Charge off's (NCOs)		41,142			6,517			531.3	%		41,142			8,176			403.2	%		63,420			9,110			596.2	%
Net loan charge-offs (annualized)		8.07	%		1.27	%		535.4	%		8.07	%		1.58	%		410.4	%		3.08	%		0.46	%		568.3	%
Provision for loan losses to NCOs		113	%		239	%		-52.8	%		113	%		188	%		-39.9	%		134	%		213	%		-37.2	%
Mortgage Activity
Mortgage Originations	$	20,052		$	36,666			-45.3	%	$	20,052		$	21,308			-5.9	%	$	121,663		$	170,095			-28.5	%
Total Servicing Portfolio (sold loans)	$	512,163		$	493,969			3.7	%	$	512,163		$	509,513			0.5	%	$	512,163		$	493,969			3.7	%
Capitalized Mortgage Servicing Rights (MSR's)	$	3,605		$	3,756			-4.0	%	$	3,605		$	3,679			-2.0	%	$	3,605		$	3,756			-4.0	%
Capital Ratios
Average common shareholders' equity to average assets		11.53	%		11.86	%		-2.8	%		11.53	%		11.65	%		-1.1	%		11.53	%		11.74	%		-1.8	%
Leverage ratio (6) (Est Q4-08)		8.96	%		9.90	%		-9.5	%		8.96	%		9.77	%		-8.3	%		8.96	%		9.90	%		-9.5	%
Total risk-based capital ratio (6) (Est Q4-08)		10.70	%		11.27	%		-5.1	%		10.70	%		11.31	%		-5.4	%		10.70	%		11.27	%		-5.1	%

Notes:

(1)  Customer relationship deposits include core deposit transaction accounts such as checking, money market and savings, while excluding all wholesale or brokered deposits and time deposits greater than $100,000.

(2)  Excludes goodwill, core deposit intangible and other identifiable intangible assets, related to the acquisitions of Community Bank of Grants Pass and F&M Holding Company.

(3)  Excludes trust preferred securities, preferred stock related to CPP, goodwill, core deposit intangible and other identifiable intangible assets, related to the acquisitions of Community Bank of Grants Grants Pass and F&M Holding Company.

(4)  Efficiency ratio is noninterest expense (adj for one-time adjs) divided by (net interest income + noninterest income).

(5)  Nonperforming assets consist of loans contractually past due 90 days or more, nonaccrual loans and other real estate owned.

(6)  Computed in accordance with FRB and FDIC guidelines.

Total Shares Outstanding as of 12/31/08:          28,088,110

CASCADE BANCORP (CACB)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

	Year over Year Quarter									Linked Quarter						Year over Year YTD
																Twelve months ended
	4th Qtr			4th Qtr			%			3rd Qtr			%			December 31,						%
	2008			2007			Change			2008			Change			2008			2007			Change
Interest income:
Interest and fees on loans	$	29,964		$	41,245			-27.4	%	$	32,938			-9.0	%	$	132,979		$	165,361			-19.6	%
Taxable interest on investments		1,239			1,216			1.9	%		1,082			14.5	%		4,451			5,160			-13.7	%
Nontaxable interest on investments		35			61			-42.6	%		40			-12.5	%		189			283			-33.2	%
Interest on federal funds sold		14			38			-63.2	%		6			133.3	%		31			187			-83.4	%
Interest on interest bearing balances from FHLB/FRB		8			2			300.0	%		45			-82.2	%		11			195			-94.4	%
Dividends on Federal Home Loan Bank stock		-			14			-100.0	%		-			0.0	%		111			42			164.3	%
Total interest income		31,260			42,576			-26.6	%		34,111			-8.4	%		137,772			171,228			-19.5	%
Interest expense:
Deposits:
Interest bearing demand		2,490			8,125			-69.4	%		3,396			-26.7	%		15,541			30,727			-49.4	%
Savings		25			45			-44.4	%		36			-30.6	%		135			202			-33.2	%
Time		4,222			3,464			21.9	%		3,045			38.7	%		12,850			15,804			-18.7	%
Junior subordinated debentures and other borrowings		2,393			4,252			-43.7	%		3,669			-34.8	%		13,845			15,991			-13.4	%
Total interest expense		9,130			15,886			-42.5	%		10,146			-10.0	%		42,371			62,724			-32.4	%
Net interest income		22,130			26,690			-17.1	%		23,965			-7.7	%		95,401			108,504			-12.1	%
Loan loss provision		46,500			15,600			198.1	%		15,390			202.1	%		84,754			19,400			336.9	%
Net interest income after loan loss provision		(24,370	)		11,090			-319.7	%		8,575			-384.2	%		10,647			89,104			-88.1	%
Noninterest income:
Service charges on deposit accounts		2,404			2,415			-0.5	%		2,552			-5.8	%		9,894			9,710			1.9	%
Mortgage loan origination and processing fees		225			381			-40.9	%		279			-19.4	%		1,363			1,744			-21.8	%
Gains on sales of mortgage loans, net		100			217			-53.9	%		53			88.7	%		583			898			-35.1	%
Gains on sales of investment securities AFS		-			-			0.0	%		436			100.0	%		436			260			67.7	%
Gains (losses) on sales of other real estate owned		(274	)		(75	)		100.0	%		62			100.0	%		(239	)		(85	)		100.0	%
Card issuer and merchant services fees, net		826			942			-12.3	%		982			-15.9	%		3,705			3,930			-5.7	%
Earnings on bank-owned life insurance		(499	)		591			-184.4	%		211			-336.5	%		264			1,574			-83.2	%
Other income		931			651			43.0	%		955			-2.5	%		3,747			3,109			20.5	%
Total noninterest income		3,713			5,122			-27.5	%		5,530			-32.9	%		19,753			21,140			-6.6	%
Noninterest expense:
Salaries and employee benefits		6,497			9,083			-28.5	%		8,959			-27.5	%		33,708			36,344			-7.3	%
Occupancy & equipment		1,690			1,737			-2.7	%		1,695			-0.3	%		6,923			6,688			3.5	%
Communications		446			476			-6.3	%		545			-18.2	%		2,038			1,988			2.5	%
Advertising		527			341			54.5	%		333			58.3	%		1,533			1,301			17.8	%
Legal		300			109			175.2	%		169			77.5	%		1,126			527			113.7	%
OREO & collection expenses		5,483			8			68437.5	%		494			1009.9	%		7,935			38			20781.6	%
Other expenses		4,695			4,086			14.9	%		1,614			190.9	%		14,322			15,623			-8.3	%
Total noninterest expense		19,638			15,840			24.0	%		13,809			42.2	%		67,585			62,509			8.1	%
Income (loss) before income taxes		(40,295	)		372			-10932.0	%		296			-13736.2	%		(37,185	)		47,735			-177.9	%
Provision (credit)  for income taxes		(16,127	)		113			-14371.7	%		(51	)		-31521.6	%		(16,011	)		17,756			-190.2	%
Net income	$	(24,168	)	$	259			-9431.3	%	$	347			-7074.9	%	$	(21,174	)	$	29,979			-170.6	%
Basic net income per common share	$	-0.86		$	0.01			-9497.8	%	$	0.01			-7072.6	%	$	-0.76		$	1.06			-171.4	%
Diluted net income per common share	$	-0.86		$	0.01			-9497.8	%	$	0.01			-7072.6	%	$	-0.76		$	1.05			-172.3	%

CASCADE BANCORP (CACB)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(unaudited)

	Year over Year								Linked Quarter
	4th Qtr			4th Qtr		%			3rd Qtr		%
	2008			2007		Change			2008		Change
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	46,554		$	62,470		-25.5	%	$	50,616		-8.0	%
Interest bearing balances due from FHLB		162			3		5300.0	%		64		153.1	%
Federal funds sold		2,230			668		233.8	%		2,938		-24.1	%
Total cash and cash equivalents		48,946			63,141		-22.5	%		53,618		-8.7	%
Investment securities available-for-sale		107,480			83,835		28.2	%		82,436		30.4	%
Investment securities held-to-maturity		2,211			3,180		-30.5	%		2,211		0.0	%
Federal Home Loan Bank stock		10,472			6,991		49.8	%		13,366		-21.7	%
Loans, net		1,923,857			2,007,603		-4.2	%		2,005,974		-4.1	%
Premises and equipment, net		39,763			38,062		4.5	%		36,382		9.3	%
Goodwill		105,047			105,047		0.0	%		105,047		0.0	%
Core deposit intangible		7,921			9,502		-16.6	%		8,316		-4.7	%
Bank-owned life insurance		33,568			33,304		0.8	%		34,067		-1.5	%
Other real estate owned (OREO)		53,527			9,765		448.2	%		37,196		43.9	%
Accrued interest and other assets		39,694			34,062		16.5	%		31,922		24.3	%
Total assets	$	2,372,486		$	2,394,492		-0.9	%	$	2,410,535		-1.6	%
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand	$	364,146		$	435,503		-16.4	%	$	446,470		-18.4	%
Interest bearing demand		816,693			936,848		-12.8	%		747,865		9.2	%
Savings		33,203			37,720		-12.0	%		38,459		-13.7	%
Time deposits		580,569			257,067		125.8	%		525,090		10.6	%
Total deposits		1,794,611			1,667,138		7.6	%		1,757,884		2.1	%
Junior subordinated debentures		68,558			68,558		0.0	%		68,558		0.0	%
Federal funds purchased		-			14,802		100.0	%		-		0.0	%
Other borrowings		248,975			327,867		-24.1	%		279,029		-10.8	%
Customer repurchase agreements		9,871			18,614		-47.0	%		11,925		-17.2	%
Accrued interest and other liabilities		1,843			22,227		-91.7	%		16,433		-88.8	%
Total liabilities		2,123,858			2,119,206		0.2	%		2,133,829		-0.5	%
Stockholders' equity:
Common stock, no par value;		158,487			157,153		0.8	%		158,158		0.2	%
Retained earnings		90,267			117,600		-23.2	%		118,518		-23.8	%
Unrealized gains (losses) on investment securities available-for-sale, net of deferred income taxes		(126	)		533		-123.6	%		30		-520.0	%
Total stockholders' equity		248,628			275,286		-9.7	%		276,706		-10.1	%
Total liabilities and stockholders' equity	$	2,372,486		$	2,394,492		-0.9	%	$	2,410,535		-1.6	%

CASCADE BANCORP (CACB)

Loan Portfolio & Reserve for Credit Losses

(Dollars in thousands)

(unaudited)

Loan portfolio	12/31/2008		% of gross loans			9/30/2008		% of gross loans			3/31/2007		% of gross loans			12/31/2007		% of gross loans
Commercial	$	585,721		30	%	$	608,714		30	%	$	579,627		30	%	$	606,408		30	%
Real Estate:
Construction/lot		533,914		27	%		595,938		29	%		610,677		32	%		686,829		34	%
Mortgage		96,417		5	%		94,380		5	%		82,311		4	%		88,509		4	%
Commercial		704,779		36	%		694,458		34	%		605,635		31	%		612,694		30	%
Consumer		58,235		3	%		56,311		3	%		53,649		3	%		47,038		2	%
Total loans		1,979,066		100	%		2,049,801		100	%		1,931,899		100	%		2,041,478		100	%
Less reserve for loan losses		55,209					43,721					24,062					33,875
Total loans, net	$	1,923,857				$	2,006,080				$	1,907,837				$	2,007,603

	Three months ended						Twelve months ended
	December 31,						December 31,
	2008			2007			2008			2007
Reserve for loan losses:
Balance at beginning of period	$	49,851		$	24,597		$	33,875		$	23,585
Loan loss provision		46,500			1,750			84,754			19,400
Recoveries		859			288			1,980			1,290
Loans charged off		(42,001	)		(1,843	)		(65,400	)		(10,400	)
Balance at end of period	$	55,209		$	24,792		$	55,209		$	33,875
Reserve for unfunded commitments:
Balance at beginning of period	$	1,039		$	3,413		$	3,163		$	3,213
Provision (credit) for unfunded commitments		-			(250	)		(2,124	)		(50	)
Balance at end of period	$	1,039		$	3,163		$	1,039		$	3,163
Reserve for credit losses:
Reserve for loan losses	$	55,209		$	24,792		$	55,209		$	33,875
Reserve for unfunded commitments		1,039			3,163			1,039			3,163
Total reserve for credit losses	$	56,248		$	27,955		$	56,248		$	37,038

CASCADE BANCORP (CACB)

Loan Breakdown by Region

(Dollars in thousands)

(unaudited)

Loan Breakdown by Region as of 12/31/08

Loan portfolio	Central  Oregon		%  of gross  loans			Northwest  Oregon		%  of gross  loans			Southern  Oregon		% of gross  loans			Idaho		%  of gross  loans			Bank  total		%  of gross  loans
Commercial	$	190,503		27	%	$	177,201		40	%	$	54,282		23	%	$	163,734		28	%	$	585,720		30	%
Construction/lot		172,849		24	%		118,363		27	%		52,384		22	%		190,318		32	%		533,914		27	%
Mortgage		39,852		6	%		9,641		2	%		8,879		4	%		38,045		6	%		96,417		5	%
Commercial		275,133		39	%		131,122		30	%		119,415		50	%		179,109		30	%		704,779		36	%
Consumer		28,237		4	%		6,461		1	%		4,088		2	%		19,450		3	%		58,236		3	%
Total Loans	$	706,574		100	%	$	442,788		100	%	$	239,048		100	%	$	590,656		100	%	$	1,979,066		100	%

CASCADE BANCORP (CACB)

CONSTRUCTION/LOT BREAKDOWN BY REGION

(Dollars in thousands) (gross of deferred loan fees)

(unaudited)

	12/31/2008		% of  category			% of  Constr /  lot  portfolio			% of  gross  loans			12/31/2007
Residential Land Development:
Raw Land	$	83,181		39	%		16	%		4	%	$	107,160
Land Development		114,681		53	%		21	%		6	%		183,809
Speculative Lots		17,923		8	%		3	%		1	%		20,916
	$	215,785		100	%		40	%		11	%	$	311,885
Geographic distribution by region:
Central Oregon	$	79,433		37	%		15	%		4	%	$	107,150
Northwest Oregon		4,670		2	%		1	%		0	%		5,328
Southern Oregon		12,822		6	%		2	%		1	%		32,541
Total Oregon		96,925		45	%		18	%		5	%		145,019
Idaho		118,859		55	%		22	%		6	%		166,866
Grand total	$	215,785		100	%		40	%		11	%	$	311,885
Residential Construction:
Pre sold	$	62,153		57	%		12	%		3	%	$	64,714
Lots		17,609		16	%		3	%		1	%		20,575
Speculative Construction		28,592		26	%		5	%		1	%		58,048
	$	108,354		100	%		20	%		5	%	$	143,337
Geographic distribution by region:
Central Oregon	$	44,000		41	%		8	%		2	%	$	52,785
Northwest Oregon		30,445		28	%		6	%		2	%		31,652
Southern Oregon		5,801		5	%		1	%		0	%		14,252
Total Oregon		80,246		74	%		15	%		4	%		98,689
Idaho		28,109		26	%		5	%		1	%		44,648
Grand total	$	108,354		100	%		20	%		5	%	$	143,337
Commercial Construction:
Pre sold	$	27,826		13	%		5	%		1	%	$	61,298
Lots		16,443		8	%		3	%		1	%		17,525
Speculative		144,356		68	%		27	%		7	%		125,271
Speculative Lots		22,409		11	%		4	%		1	%		30,815
	$	211,034		100	%		40	%		11	%	$	234,909
Geographic distribution by region:
Central Oregon	$	49,817		24	%		9	%		2	%	$	68,411
Northwest Oregon		83,720		40	%		16	%		4	%		81,683
Southern Oregon		33,876		16	%		6	%		2	%		39,235
Total Oregon		167,414		79	%		31	%		8	%		189,329
Idaho		43,621		21	%		8	%		2	%		45,580
Grand total	$	211,034		100	%		40	%		10	%	$	234,909

CASCADE BANCORP (CACB)

Non-Performing Assets

(Dollars in thousands)

(unaudited)

Non-Performing Assets by Region as of 12/31/08

Region	12/31/2008		% of  total  NPA's			9/30/2008		% of  total  NPA's			6/30/2008		%  of total  NPA's			3/31/2008		% of  total  NPA's			12/31/2007		% of  total NPA's
Central Oregon	$	54,146		30	%	$	33,495		19	%	$	27,603		25	%	$	5,560		4	%	$	5,793		6	%
Northwest Oregon		5,084		3	%		1,518		1	%		17,513		16	%		17,542		14	%		1,615		2	%
Southern Oregon		21,872		12	%		27,024		15	%		26,190		24	%		28,822		23	%		22,876		24	%
Total Oregon	$	81,102		45	%	$	62,037		34	%	$	71,306		65	%	$	51,924		41	%	$	30,284		32	%
Idaho		99,302		55	%		47,035		26	%		55,799		51	%		44,116		35	%		25,397		26	%
Grand total	$	180,404		100	%	$	109,072		60	%	$	127,105		117	%	$	96,040		76	%	$	55,681		58	%

Non-Performing Assets by Loan Type as of 12/31/08

	$ Millions		% NPA's			% of  Related  Portfolio
Land Development		99,355		55.1	%		46.0	%
Res Construction		20,558		11.4	%		19.0	%
Commercial Construction		25,133		13.9	%		11.9	%
Commercial RE		27,428		15.2	%		3.9	%
C&I / Other		7,930		4.4	%		1.1	%
		180,404		100.0	%		9.1	%

Delinquent Loans as  % of Related Portfolio as of 12/31/08

	30-59 days  past due			>60 days  past due			% of  Related  Portfolio
Land Development		2.43	%		0.00	%		2.43	%
Res Construction		0.26	%		0.32	%		0.58	%
Commercial Construction		0.00	%		0.00	%		0.00	%
Commercial RE		0.40	%		0.00	%		0.40	%
C&I		0.22	%		0.14	%		0.36	%
Consumer		0.29	%		0.09	%		0.38	%
Total loan portfolio		0.27	%		0.06	%		0.33	%

CASCADE BANCORP (CACB)

ADDITIONAL FINANCIAL INFORMATION

(Dollars in thousands)

(unaudited)

	Year over Year							Linked Quarter
	4th Qtr		4th Qtr		%			3rd Qtr		%
Three Months Ended:	2008		2007		Change			2008		Change
Average Assets	$	2,415,386	$	2,399,260		0.7	%	$	2,429,699		-0.6	%
Average Loans		2,038,591		2,051,663		-0.6	%		2,067,568		-1.4	%
Average Deposits		1,722,724		1,759,800		-2.1	%		1,650,637		4.4	%
Average Investment Securities		101,190		92,266		9.7	%		87,148		16.1	%
Average Other Earning Assets		15,949		10,636		50.0	%		14,808		7.7	%
Average Non Interest Bearing Deposits		394,733		445,510		-11.4	%		407,420		-3.1	%
Average Customer Relationship Deposits		1,395,017		1,608,956		-13.3	%		1,411,593		-1.2	%
Average Earnings Assets		2,155,730		2,154,565		0.1	%		2,169,524		-0.6	%
Average Interest Bearing Liabilities		1,721,205		1,641,756		4.8	%		1,715,196		0.4	%
Average Borrowings		393,204		327,466		20.1	%		471,979		-16.7	%
Average Common Equity (book)		278,437		284,492		-2.1	%		283,143		-1.7	%
Average Common Equity (tangible)		165,237		169,713		-2.6	%		169,544		-2.5	%

	December 31,			December 31,			%
Balances as of:	2008			2007			Change
Mortgage loans held for sale	$	1,416		$	4,306			-67.1	%
Intangibles & goodwill		112,968			114,549			-1.4	%
Loans past due >90 days, not on non-accrual status		5			51
Loans on non-accrual status		140,647			45,865			206.7	%
Total non-performing loans (NPL's)		140,652			45,916			206.3	%
OREO - non performing		39,752			9,765			307.1	%
Total non-performing assets	$	180,404		$	55,681			224.0	%
Operating commercial real estate OREO property		13,775			-			100.0	%
Total other real estate owned		53,527			9,765			448.2	%
Selected ratios:
NPL's to total gross loans		7.11	%		2.25	%		216.0	%
NPA's to total gross loans and OREO		8.88	%		2.71	%		227.0	%
NPA's to total assets		7.60	%		2.33	%		226.7	%
Shares Outstanding (actual)		28,088			28,034			0.2	%