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: June 30, 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   
                                              -----------   

                                 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.  4,265,934 shares of no par
value Common Stock on July 31, 1997.             ---------------------------   
- -------------------------------------



                         CASCADE BANCORP AND SUBSIDIARIES
                                    FORM 10-Q
                                 QUARTERLY REPORT
                                  JUNE 30, 1997

                                      INDEX


PART I:  FINANCIAL INFORMATION                                            PAGE

Condensed Consolidated Balance Sheets
  as of June 30, 1997 and December 31, 1996.. . . . . . . . . . . . . . . . .3

Condensed Consolidated Statements of Income
  for the six months and three months ended June 30, 1997 and 1996  . . . . .4

Condensed Consolidated Statements of Changes in Stockholders' Equity
  for the six months and three months ended June 30, 1997 and 1996 .. . . . .5

Condensed Consolidated Statements of Cash Flows
  for the six months ended June 30, 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 4.       Submissions of Matters to a Vote of Security Holders  . . . . 13

Item 6.       Exhibits and Reports on Form 8-K . .. . . . . . . . . . . . . 13

Signatures . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

                                        2



                          CASCADE BANCORP & SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       JUNE 30, 1997 AND DECEMBER 31, 1996
                                   (Unaudited)


                                                      1997         1996
                                                 ------------  ------------ 
                                                         
ASSETS
Cash and cash equivalents:
  Cash and due from banks                        $ 22,373,769  $ 19,567,608
  Federal funds sold                                2,000,000     9,325,000
                                                 ------------  ------------
    Total cash and cash equivalents                24,373,769    28,892,608
Investment securities available-for-sale           34,024,688    24,476,627
Investment securities held-to-maturity              3,100,851     3,320,207
Loans, net                                        147,968,989   131,626,742
Mortgage loans held for sale                        1,599,306       610,650
Premises and equipment, net                         4,675,760     4,280,754
Accrued interest and other assets                   8,745,344     8,068,985
                                                 ------------  ------------
        Total assets                             $224,488,707  $201,276,573
                                                 ============  ============

LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
  Deposits:
    Demand                                       $ 59,215,977  $ 51,484,370
    Interest bearing demand                       100,344,461    89,144,726
    Savings                                        12,961,261    12,511,495
    Time deposits                                  20,039,502    17,941,503
                                                 ------------  ------------
        Total deposits                            192,561,201   171,082,094
    Federal funds purchased                         1,000,000             -
    Long-term debt                                  5,000,000     5,000,000
    Accrued interest and other liabilities          1,138,513     1,622,430
                                                 ------------  ------------
        Total liabilities                         199,699,714   177,704,524

Stockholders'equity:
  Common stock, no par value;
    10,000,000 shares authorized;
    4,265,934 issued and outstanding               13,058,417    13,058,417
  Retained earnings                                11,649,304    10,442,535
  Unrealized gains on investment
    securities available-for-sale,
        net of deferred income taxes                   81,272        71,097
                                                 ------------  ------------
        Total stockholders' equity                 24,788,993    23,572,049
                                                 ------------  ------------
        Total liabilities and stockholders'
           equity                                $224,488,707  $201,276,573
                                                 ============  ============


See accompanying notes.

                                        3


                                     CASCADE BANCORP & SUBSIDIARIES
                               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                        SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 1997 and 1996
                                               (Unaudited)


                                            SIX MONTHS ENDED         THREE MONTHS ENDED
                                                JUNE 30,                    JUNE 30,
                                        -----------------------    -----------------------

                                            1997         1996          1997       1996
                                        ----------   ----------    ----------- -----------
                                                                   
Interest income:
  Interest and fees on loans            $7,383,223   $6,895,026    $3,879,444  $3,492,324
  Taxable interest on investments        1,125,559      311,519       657,920     137,202
  Nontaxable interest on investments        41,613       50,667        20,495      28,187
  Interest on federal funds sold           141,325      207,358        41,100     104,051
                                        ----------   ----------    ----------  ----------
         Total interest income           8,691,720    7,464,570     4,598,959   3,761,764

Interest expense:
  Deposits:
      Interest bearing demand            1,384,780    1,193,600       718,035     596,792
      Savings                              136,273      139,981        69,790      69,971
      Time                                 479,193      419,819       247,914     216,790
  Other borrowings                         245,722      172,561       159,752      85,498
                                        ----------   ----------    ----------  ----------
         Total interest expense          2,245,968    1,925,961     1,195,491     969,051
                                        ----------   ----------    ----------  ----------
Net interest income                      6,445,752    5,538,609     3,403,468   2,792,713
Loan loss provision                        375,861      148,721       279,783      66,454
                                        ----------   ----------    ----------  ----------
Net interest income after
  loan loss provision                    6,069,891    5,389,888     3,123,685   2,726,259

Noninterest income:
  Service charges on deposit accounts      870,418      734,773       446,707     381,144
  Mortgage loan origination and
     processing fees                       488,250      501,300       261,186     290,961
  Gains on sales of mortgage loans         140,381      241,197        77,151      56,013
  Other income                             512,754      453,876       267,466     225,896
                                        ----------   ----------    ----------  ----------
         Total noninterest income        2,011,803    1,931,146     1,052,510     954,014

Noninterest expense:
  Salaries and employee benefits         2,301,785    2,015,161     1,125,836     965,213
  Net occupancy & equipment                735,234      618,000       386,250     302,457
  Other expenses                         1,326,702    1,141,362       678,450     577,093
                                        ----------   ----------    ----------  ----------
         Total noninterest expense       4,363,721    3,774,523     2,190,536   1,844,763
                                        ----------   ----------    ----------  ----------
Income before income taxes               3,717,973    3,546,511     1,985,659   1,835,510
Provision for income taxes               1,444,719    1,332,967       783,727     689,825
                                        ----------   ----------    ----------  ----------
Net income                              $2,273,254   $2,213,544    $1,201,932  $1,145,685
                                        ==========   ==========    ==========  ==========
Net income per common share                 $ 0.53       $ 0.52        $ 0.28      $ 0.27
                                        ==========   ==========    ==========  ==========


See accompanying notes.

                                                     4



                              CASCADE BANCORP & SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                         SIX MONTHS ENDED JUNE 30, 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 

10% stock dividend (193,906 shares)
   Declared in June 1996                 3,805,405  (3,805,405)          -              - 

Net change in unrealized gains
   (losses) on securities
   available-for-sale                            -           -     (33,167)       (33,167)

Net income                                       -   2,213,544           -      2,213,544 
                                       ----------- -----------   ----------  ------------ 
Balance at June 30, 1996               $13,058,417 $ 8,143,075   $  18,840   $ 21,220,332 
                                       =========== ===========   ==========  ============ 


Balance at December 31, 1996           $13,058,417 $10,442,535   $  71,097   $ 23,572,049 

Net change in unrealized gains
   on securities available-for-sale              -           -      10,175         10,175 

Cash dividend declared in January 1997            
   ($0.50 per common share)                      -  (1,066,485)          -     (1,066,485)

Net income                                       -   2,273,254           -      2,273,254
                                       ----------- -----------   ----------   ----------- 
Balance at June 30, 1997               $13,058,417 $11,649,304   $  81,272   $ 24,788,993 
                                       =========== ===========   ==========   ===========



See accompanying notes.

                                                     5



                         CASCADE BANCORP & SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                                  (Unaudited)


                                                       1997           1996
                                                  ------------   ------------
                                                           
Net cash provided by operating activities         $   572,344    $   446,169 

Investing activities:
  Purchases of investment securities
      available-for-sale                          (22,495,000)    (3,985,000)
  Proceeds from maturities and calls of                            
      investment securities available-for-sale     13,010,469      2,491,406 
  Purchases of investment securities
      held-to-maturity                                (55,400)      (909,309)
  Proceeds from maturities and calls of
      investment securities held-to-maturity          269,797        546,287 
  Net increase in loans                           (16,577,727)    (6,425,843)
  Purchases of premises and equipments, net          (655,944)      (347,101)
                                                  -------------   ------------
         Net cash used in investing activities     (26,503,806)    (8,629,560)

Financing activities:
  Net increase in deposits                          21,479,107     12,540,995 
  Cash dividends paid                               (1,066,485)             - 
  Net increase in federal funds purchased            1,000,000              - 
                                                  -------------   ------------
         Net cash provided (used) by
               financing activities                 21,412,622     12,540,995 
                                                  -------------   ------------
Net increase (decrease) in cash and
   cash equivalents                                 (4,518,839)     4,357,604 
Cash and cash equivalents at beginning of period    28,892,608     27,112,461 
                                                  -------------   ------------
Cash and cash equivalents at end of period        $ 24,373,769   $ 31,470,065 
                                                  =============   ============


See accompanying notes.

                                        6
                                    


                         CASCADE BANCORP & SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 JUNE 30, 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.  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
sheets 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 June 30, 1997 and December 31, 1996 consisted of
the following:



                                              GROSS      GROSS         
                                 AMORTIZED  UNREALIZED UNREALIZED  ESTIMATED
JUNE 30, 1997                      COST       GAINS      LOSSES    FAIR VALUE
- ------------------------------ ------------ --------- ----------  -----------
                                                                 
Available-for-Sale
- ------------------
U.S. Government agencies...... $ 30,911,201 $ 119,737 $   27,500  $ 31,003,438
U.S. Treasury securities......    2,984,623    36,627          -     3,021,250
                               ------------ --------- ----------  ------------
                               $ 33,895,824 $ 156,364 $   27,500  $ 34,024,688
Held-to-Maturity
- ----------------
Obligations of state and
   Political subdivisions..... $  1,737,987 $   2,494 $    4,316  $  1,736,165
Other.........................    1,362,864         -           -    1,362,864
                               ------------ ---------  ---------- ------------
                               $  3,100,851 $   2,494 $    4,316  $  3,099,029
                               ============ =========  ========== ============

                                                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 June 30, 1997 and December 31, 1996
was as follows:

                                      1997          1996  
                                  -----------    ------------
Commercial....................   $ 27,599,904   $ 22,485,269
Real Estate:
   Construction...............     36,951,654     34,375,243
   Mortgage...................     21,791,882     19,774,232
   Commercial.................     46,005,937     42,390,479
Installment...................     17,970,855     14,665,629
                                 ------------   ------------
                                  150,320,232    133,690,852
Less:
   Reserve for loan losses....      1,917,400      1,691,260
   Deferred loan fees.........        433,843        372,850
                                 ------------   ------------
                                    2,351,243      2,064,110
                                 ------------   ------------
Loans, net ...................   $147,968,989   $131,626,742
                                 ============   ============

   Mortgage loans held for sale of $1,599,306 and $610,650 at June 30, 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 six months ended June
30, 1997 and 1996 were as follows:

                                          1997           1996
                                      -----------     ------------
Balance at beginning of period...     $ 1,691,260     $ 1,651,352 
Provisions charged to operations.         375,861         148,721 
Loans charged off................        (187,274)        (29,871)
Recoveries of loans previously
   chargedoff....................          37,553           6,759 
                                      ------------    ------------
Balance at end of period.........     $ 1,917,400     $ 1,776,961 
                                      ============    ============

   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 June 30, 1997 and December 31, 1996 (dollars in thousands):

                                           1997        1996            
                                         ------      ------           
Loans on non-accrual status...........   $   62      $   50 

Loans past due 90 days or more                              
   but non on non-accrual status......      220          27 

Other real estate owned...............        -           - 
                                         ------      ------ 
Total non-performing assets...........   $  282      $   77 
                                         ======      ====== 
Percentage of non-performing assets
   to total assets....................      .13%        .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 six months ended June 30, 1997 and 1996.

   At June 30, 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 June 30, 1997 and December 31, 1996, the Bank held servicing rights to
approximately $157,406,000 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 June 30, 1997 and December 31, 1996 include
approximately $922,000 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 six
months ended June 30, 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.  OTHER BORROWINGS

   At June 30, 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.  At June 30, 1997 the Bank had $1.0 million in
federal funds purchased.

                                        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 4,266,000 for the six-month and three-month periods ended June 30,
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 have been
restated to retroactively reflect the two-for-one stock split declared in June
1997 and 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 SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 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 six-month and three-month periods ended June 30, 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 11.5 percent to $224.5 million at June
30, 1997 compared to $201.3 million at December 31, 1996, primarily due to an
increase in investment securities available-for-sale and net loans which were
funded by an increase in deposits.  During the six monthe ended June 30, 1997
approximately $22.6 million  in investment securities were purchased with excess
funds from strong deposit growth and proceeds from maturities and calls of
investment securities.  Loan demand was strong with total loans increasing 12.4
percent to $150.3 million at June 30, 1997 compared to $133.7 million at
December 31, 1996.  Deposits increased 12.6 percent to $192.6 million at June
30, 1997 compared to $171.1 million at December 31, 1996.  Although all
categories of deposits increased, the primary change was in demand and interest
bearing 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 $172.5 million at June 30, 1997.
 
RESULTS OF OPERATIONS

   The Company reported net income of $2,273,000, or $.53 per share, for the
six months ended June 30, 1997, compared to net income of approximately
$2,214,000, or $.52 per share, for the same period in 1996.  This represents an
increase in net income of 2.7 percent.  Net income for the quarter ended June
30, 1997 was approximately $1,202,000, or $.28 per share, compared to net income
of approximately $1,146,000, or $.27 per share, for the same period in 1996,
up 4.9 percent.

   Net interest income increased 16.4 percent for the six months and 21.9
percent for the three months ended June 30, 1997 as compared to the 1996
periods.  The net increases during these periods resulted from increases in
interest income exceeding the increases in interest expense.

   Total interest income increased approximately $1,227,200 for the six months
and approximately $837,200 for the quarter ended June 30, 1997 as compared to
the 1996 periods.  These were primarily the result of increases in the volume of
loans and investment securities available-for-sale.

   Total interest expense increased approximately $320,000 for the six months
and approximately $226,400 for the quarter ended June 30, 1997 as compared to
the 1996 periods.  These increases were primarily due to increased volume in
interest bearing demand deposits and federal funds purchased.

   Total noninterest income increased 4.2 percent for the six months and 10.3
percent for the quarter ended June 30, 1997 as compared to the 1996 periods.
The increase for the six months ended June 30, 1997 was primarily due to
increases in service charges and other income, which were partially offset by
decreases in mortgage loan
                                        11



origination and processing fees and gains on sales of mortgage loans.  The
increase for the quarter ended June 30, 1997 was primarily due to increases in
service charges, gains on sales of mortgage loans and other income, partially
offset by a decrease in mortgage loan origination and processing fees.

   Increases in service charge income during 1997 were primarily due to an
increase in the volume of deposit activity during the periods presented.  The
decreases in mortgage loan origination and processing fees is primarily due to
decreased loan originations during the periods presented. The decrease in gains
on sales of mortgage loans for the six months ended June 30, 1997 was primarily
attributable to the increased interest rate environment and a more competitive
market. 

   Total noninterest expense increased 15.6 percent for the six months and 18.7
percent for the quarter ended June 30, 1997 as compared to the 1996 periods. 
These increases are 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.

LOAN LOSS PROVISION 

   The loan loss provision increased $227,140 for the six-months and $213,329
for the quarter ended June 30, 1997 as compared to the same periods 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 June
30, 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 six months ended June 30, 1997 the Company's total capital
increased to $24.8 million, or 11.0 percent of total assets.  The increase was
primarily due to the Company's net income of $2,273,254 for the six months ended
June 30, 1997 and the net change in unrealized gains on investment securities
available-for-sale of $10,175. These increases to capital were partially offset
by the $.50 per common share cash dividend totaling $1,066,485 paid from
retained earnings during the first quarter of 1997.

   At June 30, 1997, the Company's Tier 1 and total risked-based capital ratios
under the Federal Reserve Board's ("FRB") risk-based capital guidelines were
approximately 14.1% and 15.3%, respectively.  The FRB's minimum risk-based
capital ratio guidelines for Tier 1 and total capital are 4% and 8%,
respectively.

   On July 15, 1997 the Company announced the establishment of a quarterly cash
dividend and the payment of a cash dividend of $.10 per common share to all
shareholders of record on August 4, 1997.

                                        12



                           PART II - OTHER INFORMATION


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

         (a)   April 21, 1997, Annual Meeting
         (b)   Need not be completed
         (c)   The following matters were voted on at the Annual Meeting of
               Shareholders held on April 21, 1997:

               1.  The re-election of three directors:

                                             Number     Number      Total
                                            Of Votes   of Votes   Number of
                    DIRECTOR                 "FOR"    "WITHHELD"    Votes
                    ------------------     ---------  ---------   ---------
                    Jerol E, Andres        1,585,879    27,289    1,613,168
                    Roger J. Shields       1,612,165     1,003    1,613,168
                    Jacob M. Wolfe         1,612,165     1,003    1,613,168


               2.   The approval to amend the Company's articles of
                    incorporation:
         
                          Proxy       Number      Number      Total
                          Votes      Of Votes    of Votes   Number of
                          "FOR"      "AGAINST"  "ABSTAIN"     Votes
                        ---------   ---------    --------   ---------
                        1,115,444     16,710      28,022    1,160,176
               

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)   The following documents are filed as part of the Quarter
               Report on Form 10-Q.
         
               3.1   ARTICLES OF INCORPORATION.  A complete copy of the articles
                     of incorporation as amended.
               
         (b)   Reports on Form 8-K.  The Company did not file any reports on
               Form 8-K during the second quarter ended June 30, 1997.

                                        13



                                    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    8/11/97                              By /s/ Roger J. Shields 
                                               ----------------------------
                                               Roger J. Shields, President


Date    8/12/97                              By /s/ Patricia L. Moss 
                                               ----------------------------
                                               Patricia L. Moss, Chief         
                                               Financial Officer   

                                        14