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, 2003

|_|

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
(State or other jurisdiction of
incorporation or organization)

93-1034484
(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. 12,594,501 shares of no par value Common Stock as of July 31, 2003.

CASCADE BANCORP & SUBSIDIARY
FORM 10-Q
QUARTERLY REPORT
JUNE 30, 2003

INDEX

PART I: FINANCIAL INFORMATION

Page

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets: June 30, 2003 and December 31, 2002	3

	Condensed Consolidated Statements of Income: Six months and three months ended June 30, 2003 and 2002	4

	Condensed Consolidated Statements of Changes in Stockholders’ Equity: Six months ended June 30, 2003 and 2002	5

	Condensed Consolidated Statements of Cash Flows: Six months ended June 30, 2003 and 2002	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17

Item 4.	Controls and Procedures	17

PART II: OTHER INFORMATION

Item 4.	Submission of Matters to a Vote of Security Holders	18

Item 6.	Exhibits and Reports on Form 8-K	18

SIGNATURES

CERTIFICATIONS

PART I

Item 1. FINANCIAL STATEMENTS

Cascade Bancorp & Subsidiary
Condensed Consolidated Balance Sheets
June 30, 2003 and December 31, 2002
(Unaudited)

	June 30, 2003		December 31, 2002
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	26,258,246	$	23,983,180
Federal funds sold		58,100,000		6,000,000

Total cash and cash equivalents		84,358,246		29,983,180
Investment securities available-for-sale		28,504,352		27,781,266
Investment securities held-to-maturity		663,161		789,586
Federal Home Loan Bank stock		2,239,400		2,174,400
Loans, net		541,108,174		491,503,539
Premises and equipment, net		11,188,163		10,000,023
Accrued interest and other assets		17,591,477		16,127,347

Total assets	$	685,652,973	$	578,359,341


LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand	$	227,514,899	$	209,523,869
Interest bearing demand		296,352,822		220,683,909
Savings		26,613,838		22,471,480
Time		46,571,861		49,283,000

Total deposits		597,053,420		501,962,258
Borrowings		25,702,919		18,000,000
Accrued interest and other liabilities		6,378,446		7,209,368

Total liabilities		629,134,785		527,171,626

Stockholders’ equity:
Common stock, no par value;
20,000,000 shares authorized;
12,586,970 issued and outstanding (12,513,638 in 2002)		18,588,386		18,253,082
Retained earnings		37,017,177		32,172,221
Accumulated other comprehensive income		912,625		762,412

Total stockholders’ equity		56,518,188		51,187,715

Total liabilities and stockholders' equity	$	685,652,973	$	578,359,341

See accompanying notes.

Cascade Bancorp & Subsidiary
Condensed Consolidated Statements of Income
Six Months and Three Months ended June 30, 2003 and 2002
(Unaudited)

	Six months ended June 30,						Three months ended June 30,
	2003			2002			2003			2002
Interest income:
Interest and fees on loans	$	19,289,808		$	17,800,560		$	9,824,961		$	9,119,857
Taxable interest on investments		558,258			528,880			236,395			260,760
Nontaxable interest on investments		23,053			19,707			13,454			10,024
Interest on federal funds sold		44,198			3,268			30,233			392
Dividends on Federal Home Loan Bank stock		65,124			61,200			28,900			31,000

Total interest income		19,980,441			18,413,615			10,133,943			9,422,033

Interest expense:
Deposits:
Interest bearing demand		1,130,621			1,160,247			593,010			588,572
Savings		59,715			72,959			30,714			38,390
Time		502,648			970,487			232,728			456,086
Borrowings		316,777			255,397			148,834			129,192

Total interest expense		2,009,761			2,459,090			1,005,286			1,212,240


Net interest income		17,970,680			15,954,525			9,128,657			8,209,793
Loan loss provision		1,400,000			1,830,000			700,000			900,000

Net interest income after loan loss provision		16,570,680			14,124,525			8,428,657			7,309,793

Noninterest income:
Service charges on deposit accounts		2,917,184			2,089,486			1,565,095			1,082,972
Mortgage loan origination and processing fees		1,806,067			1,237,304			877,538			513,674
Gains on sales of mortgage loans, net		1,069,194			317,990			531,419			204,178
Mortgage loan servicing fees (net of
amortization of mortgage servicing rights and
impairment, if any)		(1,194,462	)		(72,974	)		(549,718	)		(26,437	)
Other income		1,490,315			1,201,842			862,509			618,612

Total noninterest income		6,088,298			4,773,648			3,286,843			2,392,999

Noninterest expense:
Salaries and employee benefits		7,185,068			5,997,619			3,559,786			3,069,988
Net occupancy and equipment		1,329,799			1,143,449			689,687			572,870
Other expenses		2,998,636			2,993,809			1,546,195			1,399,751

Total noninterest expense		11,513,503			10,134,877			5,795,668			5,042,609


Income before income taxes		11,145,475			8,763,296			5,919,832			4,660,183
Provision for income taxes		4,290,779			3,414,379			2,296,332			1,816,920

Net income	$	6,854,696		$	5,348,917		$	3,623,500		$	2,843,263


Basic earnings per common share	$	0.55		$	0.43		$	0.29		$	0.23

Diluted earnings per common share	$	0.53		$	0.42		$	0.28		$	0.22