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: March 31, 1997
---------------
/ / 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: 0-23322
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CASCADE BANCORP
(Exact name of Registrant as specified in its charter)
Oregon 93-1034484
(State of Incorporation) (I.R.S. Employer Identification No.)
1100 NW Wall Street
Bend, Oregon 97701
(Address of principal executive offices)
(Zip Code)
(541) 385-6205
(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
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. 2,132,967 shares of no par
value Common Stock on April 30, 1997. ---------------------------
- -------------------------------------
CASCADE BANCORP AND SUBSIDIARIES
FORM 10-Q
QUARTERLY REPORT
MARCH 31, 1997
INDEX
PART I: FINANCIAL INFORMATION PAGE
Condensed Consolidated Balance Sheets
as of March 31, 1997 and December 31, 1996 . . . . . . . . . . . . . . .3
Condensed Consolidated Statements of Income
for the three months ended March 31, 1997 and 1996 . . . . . . . . . . .4
Condensed Consolidated Statements of Changes in Stockholders' Equity
for the three months ended March 31, 1997 and 1996 . . . . . . . . . . .5
Condensed Consolidated Statements of Cash Flows
for the three months ended March 31, 1997 and 1996 . . . . . . . . . . .6
Notes to Condensed Consolidated Financial Statements . . . . . . . . . . .7
Management's Discussion and Analysis of Financial Condition
and Results of Operations. . . . . . . . . . . . . . . . . . . . . . . 11
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2
CASCADE BANCORP & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND DECEMBER 31, 1996
(Unaudited)
1997 1996
------------ -----------
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 19,288,269 $ 19,567,608
Federal funds sold 11,550,000 9,325,000
------------ ------------
Total cash and cash equivalents 30,838,269 28,892,608
Investment securities available-for-sale 30,688,594 24,476,627
Investment securities held-to-maturity 3,198,813 3,320,207
Loans, net 133,670,468 131,626,742
Mortgage loans held for sale 951,750 610,650
Premises and equipment, net 4,426,807 4,280,754
Accrued interest and other assets 7,637,576 8,068,985
------------ ------------
Total assets $211,412,277 $201,276,573
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $ 56,155,621 $ 51,484,370
Interest bearing demand 93,170,209 89,144,726
Savings 12,713,998 12,511,495
Time deposits 19,575,996 17,941,503
------------ ------------
Total deposits 181,615,824 171,082,094
Long-term debt 5,000,000 5,000,000
Accrued interest and other liabilities 1,409,070 1,622,430
------------ ------------
Total liabilities 188,024,894 177,704,524
Stockholders'equity:
Common stock, no par value;
10,000,000 shares authorized;
2,132,967 issued and outstanding 13,058,417 13,058,417
Retained earnings 10,447,373 10,442,535
Unrealized gains (losses) on investment
securities available-for-sale,
net of deferred income taxes (118,407) 71,097
------------ ------------
Total stockholders' equity 23,387,383 23,572,049
------------ ------------
Total liabilities and stockholders'
equity $211,412,277 $201,276,573
============ ============
See accompanying notes.
3
CASCADE BANCORP & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1997 and 1996
(Unaudited)
1997 1996
---------- ----------
Interest income:
Interest and fees on loans $3,503,779 $3,402,702
Taxable interest on investments 467,639 174,317
Nontaxable interest on investments 21,118 22,480
Interest on federal funds sold 100,225 103,307
---------- ----------
Total interest income 4,092,761 3,702,806
Interest expense:
Deposits:
Interest bearing demand 666,745 596,808
Savings 66,483 70,010
Time 231,279 203,029
Other borrowings 85,970 87,063
---------- ----------
Total interest expense 1,050,477 956,910
---------- ----------
Net interest income 3,042,284 2,745,896
Loan loss provision 96,078 82,267
---------- ----------
Net interest income after loan loss provision 2,946,206 2,663,629
Noninterest income:
Service charges on deposit accounts 423,711 353,629
Mortgage loan origination and processing fees 227,064 210,339
Gains on sales of mortgage loans 63,230 107,936
Other income 245,288 305,228
---------- ----------
Total noninterest income 959,293 977,132
Noninterest expense:
Salaries and employee benefits 1,175,949 1,049,948
Net occupancy & equipment 348,984 315,543
Other expenses 648,252 564,270
---------- ----------
Total noninterest expense 2,173,185 1,929,761
---------- ----------
Income before income taxes 1,732,314 1,711,000
Provision for income taxes 660,992 643,142
---------- ----------
Net income $1,071,322 $1,067,858
========== ==========
Net income per common share $ 0.50 $ 0.50
========== ==========
See accompanying notes.
4
CASCADE BANCORP & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
UNREALIZED
GAINS (LOSSES)
ON SECURITIES TOTAL
COMMON RETAINED AVALABLE STOCKHOLDERS'
STOCK EARNINGS FOR SALE EQUITY
----------- ----------- ---------- -----------
Balance at December 31, 1995 $ 9,253,012 $ 9,734,936 $ 52,007 $ 19,039,955
Net change in unrealized gains
(losses) on securities
available-for-sale - - (32,517) (32,517)
Net income - 1,067,858 - 1,067,858
----------- ----------- ---------- -----------
Balance at March 31, 1996 $ 9,253,012 $10,802,794 $ 19,490 $ 20,075,296
Balance at December 31, 1996 $13,058,417 $10,442,535 $ 71,097 $ 23,572,049
Net change in unrealized gains
(losses) on securities
available-for-sale - - (189,504) (189,504)
Cash dividend declared in January 1997
($0.50 per common share) - (1,066,484) - (1,066,484)
Net income - 1,071,322 - 1,071,322
----------- ----------- ---------- -----------
Balance at March 31, 1997 $13,058,417 $10,447,373 $(118,407) $ 23,387,383
=========== =========== ========== ===========
See accompanying notes.
5
CASCADE BANCORP & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
------------ ------------
Net cash provided by operating activities $ 1,091,974 $ 1,352,840
Investing activities:
Purchases of investment securities
available-for-sale (11,500,000) -
Proceeds from maturities and calls of
investment securities available-for-sale 4,967,969 -
Purchases of investment securities
held-to-maturity (26,200) -
Proceeds from maturities and calls of
investment securities held-to-maturity 144,797 261,000
Net increase in loans (2,076,574) (4,897,664)
Purchases of premises and equipments, net (123,551) (30,614)
------------ ------------
Net cash used in investing activities (8,613,559) (4,667,278)
Financing activities:
Net increase (decrease) in deposits 10,533,730 (1,332,272)
Cash dividends paid (1,066,484) -
------------ ------------
Net cash provided (used) by
financing activities 9,467,246 (1,332,272)
------------ ------------
Net increase (decrease) in cash and cash equivalents 1,945,246 (4,646,710)
Cash and cash equivalents at beginning of period 28,892,608 27,112,461
------------ ------------
Cash and cash equivalents at end of period $ 30,838,269 $ 22,465,751
============ ============
See accompanying notes.
6
CASCADE BANCORP & SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
(Unaudited)
1. BASIS OF PRESENTATION
The interim condensed consolidated financial statements include the
accounts of Cascade Bancorp (Bancorp), a bank holding company, and its wholly-
owned subsidiaries, Bank of the Cascades (the Bank) and Cascade Finance,
(collectively, "the Company"). The Bank is an Oregon State-chartered, federally
insured commercial bank and Cascade Finance is a consumer finance company.
Cascade Finance began operations during the three months ended March 31, 1997
and such operations were not significant to the accompanying condensed
consolidated financial statements. All significant intercompany accounts and
transactions have been eliminated in consolidation.
The interim condensed consolidated financial statements are unaudited, but
include all adjustments, consisting of only normal accruals, which the Company
considers necessary for a fair presentation of the results of operations for
such interim periods. 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 date of the balance
sheet and income and expenses for the periods. Actual results could differ from
those estimates.
The interim condensed consolidated financial statements should be read in
conjunction with the December 31, 1996 consolidated financial statements,
including the notes thereto, included in Bancorp's 1996 Annual Report to
Shareholders.
Certain amounts for 1996 have been reclassified to conform with the 1997
presentation.
2. INVESTMENT SECURITIES
Investment securities at March 31, 1997 and December 31, 1996 consisted of
the following:
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZE ESTIMATED
MARCH 31, 1997 COST GAINS LOSSES FAIR VALUE
- ------------------------------ ------------ --------- ----------- -----------
Available-for-Sale
- ------------------
U.S. Government agencies...... $ 27,890,759 $ 273 $ 194,000 $ 27,697,032
U.S. Treasury securities...... 2,988,814 2,748 - 2,991,562
------------ --------- ---------- ------------
$ 30,879,573 $ 3,021 $ 194,000 $ 30,688,594
Held-to-Maturity
- ----------------
Obligations of state and
Political subdivisions..... $ 1,865,149 $ 1,672 $ 1,536 $ 1,865,285
Other......................... 1,333,664 - - 1,333,664
------------ --------- ---------- ------------
$ 3,198,813 $ 1,672 $ 1,536 $ 3,198,949
============ ========= ========== ============
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZE ESTIMATED
DECEMBER 31, 1996 COST GAINS LOSSES FAIR VALUE
- ------------------------------ ------------ --------- ---------- -----------
Available-for-Sale
- ------------------
U.S. Government agencies...... $ 20,372,543 $ 95,022 $ - $ 20,467,565
U.S. Treasury securities...... 3,989,347 19,715 - 4,009,062
------------ --------- ---------- ------------
$ 24,361,890 $ 114,737 $ - $ 24,476,627
Held-to-Maturity
- ----------------
Obligations of state and
Political subdivisions..... $ 2,012,743 $ 3,103 $ 2,808 $ 2,013,038
Other......................... 1,307,464 - - 1,307,464
------------ --------- ---------- ------------
$ 3,320,207 $ 3,103 $ 2,808 $ 3,320,502
============ ========= ========== ============
7
3. LOANS AND RESERVCE FOR LOAN LOSSES
The composition of the loan portfolio at March 31, 1997 and December 31,
1996 was as follows:
1997 1996
----------- ------------
Commercial.................... $ 23,824,126 $ 22,485,269
Real Estate:
Construction............... 35,230,467 34,375,243
Mortgage................... 19,299,581 19,774,232
Commercial................. 42,356,032 42,390,479
Installment................... 15,115,692 14,665,629
------------ ------------
Less:
Reserve for loan losses.... 1,735,761 1,691,260
Deferred loan fees......... 419,669 372,850
------------ ------------
2,155,430 2,064,110
------------ ------------
Loans, net ................... $133,670,468 $131,626,742
============ ============
Mortgage loans held for sale of $951,750 and $610,650 at March 31, 1997 and
December 31, 1996, respectively, represent real estate mortgage loans. These
loans are recorded at cost which approximates market.
Transactions in the reserve for loan losses for the three months ended March
31, 1997 and 1996 were as follows:
1997 1996
----------- ------------
Balance at beginning of period... $ 1,691,260 $ 1,651,352
Provisions charged to operations. 96,078 82,267
Loans charged off................ (65,248) (15,256)
Recoveries of loans previously
chargedoff.................... 13,671 4,650
------------ ------------
Balance at end of period......... $ 1,735,761 $ 1,723,013
============ ============
The reserve for loan losses represents management's recognition of the
assumed risks of extending credit and the quality of the existing loan
portfolio. The reserve is maintained at a level considered adequate to provide
for potential loan losses based on management's assessment of various factors
affecting the portfolio. Such factors include loss experience, review of
problem loans, current economic conditions, and an overall evaluation of the
quality, risk characteristics and concentration of loans in the portfolio. The
reserve is increased by provisions charged to operations and reduced by loans
charged-off, net of recoveries.
Although a risk of nonpayment exists with respect to all loans, certain
specific types of risks are associated with different types of loans. Due to
the nature of the Bank's customer base and the growth experienced in the Bank's
market area, real estate is frequently a material component of collateral for
the Bank's loans. The expected source of repayment of these loans is generally
the operations of the borrower's business or personal income; however, real
estate provides an additional measure of security. Risks associated with real
estate loans include fluctuating land values, local economic conditions, changes
in tax policies, and a concentration of loans within the Bank's market area.
The Bank mitigates risks on construction loans by generally lending funds to
customers that have been prequalified for long term financing and who are using
experienced contractors approved by the Bank. The commercial real estate risk
is further mitigated by making the majority of commercial real estate loans to
owner-occupied users of the property. The Bank manages the general risks
inherent in the loan portfolio by following loan policies and underwriting
practices designed to result in prudent lending activities.
8
The following table presents information with respect to non-performing
assets at March 31, 1997 and December 31, 1996 (dollars in thousands):
1997 1996
------ ------
Loans on non-accrual status........... $ 48 $ 50
Loans past due greater than 90 days
but non on non-accrual status...... 11 27
Other real estate owned............... - -
------ ------
Total non-performing assets........... $ 59 $ 77
====== ======
Percentage of non-performing assets
to total assets.................... .03% .04%
The accrual of interest on a loan is discontinued when, in management's
judgment, the future collectibility of principal or interest is in doubt. Loans
placed on nonaccrual status may or may not be contractually past due at the time
of such determination, and may or may not be secured. When a loan is placed on
nonaccrual status, it is the Bank's policy to reverse, and charge against
current income, interest previously accrued but uncollected. Interest
subsequently collected on such loans is credited to loan principal if, in the
opinion of management, full collectibility of principal is doubtful. If
interest on nonaccrual loans had been accrued, such income would have been
insignificant for the three months ended March 31, 1997 and 1996.
At March 31, 1997, there were no potential problem loans, except as
discussed above, where known information about possible credit problems of the
borrower caused management to have serious doubts as to the ability of such
borrower to comply with the present loan repayment terms and which may result in
such loans being placed on a non-accrual basis.
4. MORTGAGE SERVICING RIGHTS
At March 31, 1997 and December 31, 1996, the Bank held servicing rights to
approximately $150,135,000 and $143,008,000, respectively, in mortgage loans
which have been sold to the Federal National Mortgage Association. These
mortgage loans are being serviced for the Bank by another financial institution
under a sub-servicing agreement. The sale of these mortgage loans are subject
to technical underwriting exceptions and related repurchase risks. Such risks
are considered in the determination of the reserve for loan losses.
Effective January 1, 1996, the Bank prospectively adopted Statement of
Financial Accounting Standards (SFAS) No. 122, "Accounting for Mortgage
Servicing Rights" (SFAS 122) (superceded by SFAS No. 125 - see Note 7). SFAS
122 required the Bank to recognize as separate assets the rights to service
mortgage loans which are acquired through loan origination activities
subsequent to December 31, 1995. Other assets in the accompanying condensed
consolidated balance sheets as of March 31, 1997 and December 31, 1996 include
approximately $734,000 and approximately $575,000, respectively, for the
capitalized mortgage servicing rights.
The fair value of the capitalized mortgage servicing rights was determined
based on estimates of the present value of expected future cash flows and
comparisons to current market transactions involving mortgage servicing rights
with similar portfolio characteristics. There were no significant changes in
the valuation allowance for capitalized mortgage servicing rights during the
three months ended March 31, 1997 and 1996. The predominant risk characteristics
of the underlying loans used to stratify the capitalized mortgage servicing
rights for purposes of measuring impairment are note rates, terms and interest
methods (i.e., fixed and variable).
5. LONG-TERM BORROWINGS
At March 31, 1997 and December 31, 1996, the Bank had $5.0 million in long-
term debt from the Federal Home Loan Bank of Seattle (FHLB) on a three year note
due in May 1998, with a fixed interest rate of 6.96%. The borrowings from FHLB
are secured by Bank assets.
9
6. NET INCOME PER COMMON SHARE
Net income per common share is net income divided by the weighted average
shares outstanding for that period. The weighted average number of common
shares outstanding used to compute net income per common share, was
approximately 2,133,000 for the three-month periods ended March 31, 1997 and
1996. Weighted average shares outstanding consists of common shares outstanding
and common stock equivalents attributable to stock options. Net income per
common share and weighted average shares outstanding for the three months ended
March 31, 1996 have been restated to retroactively reflect the 10% stock
dividend declared In June 1996.
In February 1997 the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings per Share" (SFAS No. 128).
SFAS 128 supercedes APB Opinion No. 15, "Earnings per Share" and the related
interpretations (APB No. 15). SFAS No. 128 will require the Company to present
both basic and diluted earnings per share (EPS) on the face of the income
statement and to provide a reconciliation of the numerator and denominator of
the basic EPS computation to the numerator and denominator of the diluted EPS
computation. In addition, the computation of basic EPS will not consider common
stock equivalents such as stock options.
SFAS No. 128 will be effective for the Company in the fourth quarter of
1997, and earlier application is not permitted. After the effective date, all
prior-period EPS data presented shall be restated (including interim financial
statements) to conform with the provisions of SFAS No. 128. Management believes
that the calculation of basic and diluted earnings per share in accordance with
SFAS No. 128 will not be significantly different than historically reported net
income per share in accordance with APB No. 15.
7. ADOPTION OF ADDITIONAL NEW ACCOUNTING STANDARDS
In June 1996, SFAS No. 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinquishments of Liabilities" (SFAS125) was issued. SFAS
125 superseded SFAS 122 and also established standards for when transfers of
financial assets (e.g., loan participations), including those with continuing
involvement by the transferor, should be considered a sale. SFAS 125 also
established standards for when a liability should be considered extinquished.
SFAS 125 is generally effective for transfers of assets and extinquishments of
liabilities after December 31, 1996, applied prospectively. Earlier adoption or
retroactive application of SFAS 125 was not permitted. In addition, in December
1996, SFAS No. 127 was issued which deferred the effective date of certain
provisions of SFAS 125 for one year. The effect of adopting SFAS 125 was not
significant to the Company's condensed consolidated financial statements.
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
The following discussion should be read in conjunction with the Company's
unaudited condensed consolidated financial statements and the notes thereto for
the three-month periods ended March 31, 1997 and 1996 included in this report.
The following discussion includes certain forward-looking statements. Those
statements may involve a number of risks and uncertainties, which could cause
actual results to differ materially from the expectation stated, including the
following: slower than expected growth in the Company's business, deterioration
of business conditions generally or specifically in the banking industry,
regulatory changes involving banking, competitive factors, and general market
conditions.
FINANCIAL CONDITION
The Company's total assets increased 5.0 percent to $211.4 million at March
31, 1997 compared to $201.3 million at December 31, 1996, primarily due to an
increase in investment securities available-for-sale and federal funds sold
which were funded by an increase in deposits. During the quarter ended March
31, 1997 approximately $12 million in investment securities were purchased with
excess funds from strong deposit growth and proceeds from maturities and calls
of investment securities. Loan demand continues to be steady with total loans
increasing 1.6 percent to $135.8 million at March 31, 1997 compared to $133.7
million at December 31, 1996. Deposits increased 6.1 percent to $181.6 million
at March 31, 1997 compared to $171.1 million at December 31, 1996. Although all
categories of deposits increased, the primary change was in demand deposits.
One of the contributing factors of the Company's increased deposits is that the
Bank emphasizes the development of core deposit relationships because such
deposits provide a stable source of funds for operations at a relatively low
cost, and because core deposit customers are more likely to purchase other
banking services. Core deposits include demand, interest bearing demand and
savings deposits. The Bank's core deposits aggregated approximately $162
million at March 31, 1997.
RESULTS OF OPERATIONS
The Company reported net income of $1,071,000, or $.50 per share, for the
three months ended March 31, 1997, up slightly as compared to the same period in
1996 with net income of $1,068,000, or $.50 per share.
Net interest income increased 10.8 percent in the first quarter ended March
31, 1997 as compared to the same period in 1996. This change resulted from a
$389,955 increase in interest income in conjunction with a $93,567 increase in
interest expense. Net interest income increased primarily as a result of an
increase in the volume of loans and investment securities available-for-sale.
Total noninterest income decreased 1.8 percent in the first three months of
1997 as compared to the same period of 1996. The decrease was primarily due a
decrease in gains on sales of mortgage loans of approximately $45,000 and a
decrease in other income of approximately $60,000. These decreases were
partially offset by an increase in service charge income of approximately
$70,000 and an increase in mortgage loan origination and processing fees of
approximately $17,000.
Total noninterest expense increased 12.6 percent during the first quarter of
1997 compared to the same period in 1996. This increase is primarily the result
of increased personnel and operating expenses due to continued growth of the
Bank and the opening of Cascade Finance.
Income tax expense increased between the periods presented primarily as a
result of higher pre-tax income.
11
LOAN LOSS PROVISION
The loan loss provision increased $13,811 during the quarter ended March 31,
1997 as compared to the same period in 1996, primarily due to loan growth.
Management believes the current loan loss provision maintains the reserve for
loan losses at an appropriate level. The Bank's ratio of reserve for loan
losses to total loans was 1.28 percent at March 31, 1997 compared to 1.26
percent at December 31, 1996.
LIQUIDITY
Bancorp's principal subsidiary, Bank of the Cascades, has adopted policies
to maintain a relatively liquid position to enable it to respond to changes in
the Bank's needs and financial environment. Generally, the Bank's major sources
of liquidity are customer deposits, sales and maturities of investment
securities, the use of federal funds markets and net cash provided by operating
activities. In addition, scheduled loan repayments are a relatively stable
source of funds, while deposit inflows, unscheduled loan prepayments, and
undisbursed loan funds , are influenced by general interest rate levels,
interest rates available on other investments, competition, economic conditions
and other factors, and are not necessarily stable sources and uses of funds.
Along with federal funds lines and undisbursed loan funds, the Bank is also
a member of the Federal Home Loan Bank, Seattle, Washington, which provides
secured borrowings and other funding opportunities for liquidity purposes.
Management believes that the Bank's existing sources of liquidity will
enable the Bank to fund its requirements in the normal course of business.
CAPITAL RESOURCES
During the first quarter of 1997 the Company's total capital decreased to
$23.4 million, or 11.1 percent of total assets. The decrease was primarily due
to the $.50 per common share cash dividend totaling $1,066,484 paid from
retained earnings and the net change in unrealized gains (losses) on investment
securities available-for-sale of ($189,504), partially offset by the Company's
first quarter net income of $1,071,322. The net decrease in unrealized gains
(losses) on investment securities was primarily the result of changes in market
rates.
At March 31, 1997, Bancorp's Tier 1 and total risked-based capital ratios
under the Federal Reserve Board's ("FRB") risk-based capital guidelines were
approximately 14.9% and 16.1%, respectively. The FRB's minimum risk-based
capital ratio guidelines for Tier 1 and total capital are 4% and 8%,
respectively.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) No exhibits were required to be filed for the first quarter ended
March 31, 1997.
(b) Reports on Form 8-K. A Form 8-K dated January 15, 1997, was
filed during the first quarter ended March 31, 1997 relating to
the opening of Bancorp's first non-bank subsidiary, Cascade
Finance.
12
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 5/7/97 By /s/ Roger J. Shields
----------------------------
Roger J. Shields, President
Date 5/7/97 By /s/ Patricia L. Moss
----------------------------
Patricia L. Moss, Chief
Financial Officer
13