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Exhibit 99.1

NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Terry E. Zink, President and Chief Executive Officer, Cascade Bancorp (541) 617-3527
Gregory D. Newton, EVP and Chief Financial Officer, Cascade Bancorp (541) 617-3526

CASCADE BANCORP REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS

Bend, Ore. – May 8, 2014 - Cascade Bancorp, (NASDAQ: CACB) (“Company” or "Cascade") the holding company for Bank of the Cascades (“Bank”), today announced its financial results for the three months ended March 31, 2014. The full details of the Company’s first quarter 2014 results were filed with the Securities and Exchange Commission (“SEC”) in the Company’s quarterly report on Form 10-Q on May 8, 2014.
First Quarter 2014 Financial Highlights
Net income for the first quarter of 2014 was $0.9 million or $0.02 per diluted share compared to $1.7 million or $0.04 per diluted share for the first quarter of 2013.
Stockholders’ equity increased to $190.3 million or $4.00 per share at March 31, 2014 as compared to $188.7 million or $3.97 per share at December 31, 2013.
Gross loans at March 31, 2014 totaled $1.0 billion, an increase of 14.9% and 1.1% compared to March 31, 2013 and December 31, 2013 respectively.
As of March 31, 2014, substandard loans were reduced by 4.9% to $39.2 million compared to December 31, 2013.
Non-performing assets improved to 0.65% of total assets at March 31, 2014 compared to 0.81% at December 31, 2013 and net recoveries for the first quarter of 2014 were $0.9 million, as compared to net charge-offs of $2.7 million in the first quarter of 2013.
Total deposits as of March 31, 2014 decreased $4.7 million or 0.40% compared to December 31, 2013.
Net Interest Margin (“NIM”) was 3.83% as of March 31, 2014 compared to 4.11% for the quarter ended December 31, 2013.

Terry Zink, President and Chief Executive Officer of Cascade Bancorp, commented, “The first quarter marked a critical inflection point in Cascades’ recent history as we focus our strategy toward becoming a leading Pacific Northwest community bank with strong return metrics.” He continued by saying, “Assuming we receive the requisite shareholder approvals, we expect to close our proposed merger with Home Federal Bancorp (“Home Federal”) in mid-May.”  

Mr. Zink went on to say, “Upon the anticipated closing of the merger, we look forward to welcoming Home Federal Bank customers to Bank of the Cascades and realizing the opportunities to enhance efficiencies while delivering expanded services and conveniences.”

Greg Newton, Chief Financial Officer, added, “Much of our focus during this quarter was preparation for the merger with Home Federal. We are pleased that our credit quality metrics continued to improve during the quarter with reductions in both substandard loans and non-performing asset, while loans and deposits were stable during our seasonally slower winter quarter.” He added, “Also, during this quarter we continued to re-balance the loan portfolio in favor of commercial and industrial loans. This loan type was up $19.3 million or 7.6% from the prior quarter while commercial real estate loans declined $8.3 million or 1.5% during the quarter. This resulted in modest overall loan growth in our seasonally weakest period.” 
 



Financial Review

Total assets were $1.4 billion at March 31, 2014, down $32.2 million from December 31, 2013. The decrease in total assets during the period ended March 31, 2014 primarily resulted from decreases in cash and cash equivalents of $31.8 million, investments of $4.7 million and loans held for sale of $6.0 million. These decreases were partially offset by a $10.3 million increase in net loans.

The decline in cash and cash equivalents resulted primarily from the payoff of $27.0 million short-term FHLB advances outstanding at year end. The decline in investment securities available-for-sale during the three months ended March 31, 2014 was primarily the result of the principal pay downs of our mortgage-backed securities.

Total loans and loans held-for-sale outstanding increased $5.2 million to $1.0 billion at March 31, 2014 compared to December 31, 2013, primarily attributable to increased balances in the commercial and industrial portfolio.

Loan quality continued to improve with remediation of special mention and substandard loans. Loans categorized as such totaled $67.3 million at March 31, 2014 as compared to $85.1 million at December 31, 2013. Remediation was accomplished through credit upgrades owing to improved obligor cash flows as well as payoffs/paydowns, note sales and/or charge offs related to the restructure of adversely risk rated loans. Non-performing assets as of March 31, 2014 improved to 0.65% of total assets as compared to 0.81% at December 31, 2013. Net recoveries during the first quarter of 2014 were $0.9 million; the Company made no provision for loan losses as management believes the reserve for loan losses of $21.7 million at March 31, 2014 is adequate.

Total liabilities were $1.2 billion at March 31, 2014, a $33.8 million decrease from December 31, 2013. This was primarily the result of $27.0 million in reduced FHLB borrowings and a $4.7 million decrease in total deposits.

Net income for the quarter ended March 31, 2014 was $0.02 per share, or $0.9 million, compared to $0.04 per share, or $1.7 million, for the first quarter of 2013 and $0.03 per share or $1.2 million in the fourth quarter of 2013 ("linked quarter"). The decrease in net income in the first quarter of 2014 compared to the same period in 2013 was primarily the result of $0.8 million in transaction related expenses related to our proposed merger with Home Federal. The decrease in net income in the first quarter of 2014 compared to the fourth quarter of 2013 was primarily a result a recovery of $1.0 million in interest from the payoff of a non-accrual loan in the fourth quarter of 2013.

Net interest income was $11.7 million for the first quarter of 2014, comparable to $11.6 million in the first quarter of 2013 and down from $13.1 million in the fourth quarter of 2013. The $1.3 million decline from the linked quarter to the current quarter was related to the inclusion of the $1.0 million recovery discussed above.

Total interest income decreased $0.5 million from $12.6 million in the first quarter of 2013 to $12.1 million in the first quarter of 2014. The decrease was due primarily to lower interest rates in the first quarter of 2014 compared to the same period in 2013.

Total interest expense for the first quarter of 2014 decreased $0.6 million compared to the first quarter of 2013. This improvement was primarily due to lower rates on deposits and reduced borrowing expenses.

Total non-interest income remained relatively consistent in the first quarter of 2014 compared to the same period in 2013 mainly as a result of increases in card issuer and merchant services fees of $0.3 million, customer swap fee income of $0.3 million in connection with the Company’s newly initiated interest rate swap products, as well as increased Small Business Administration fees. These increases were offset by reduced mortgage banking income of $0.7 million in the first quarter of 2014 compared to the first quarter of 2013.

Total non-interest expense for the three months ended March 31, 2014 increased over the three months ended March 31, 2013 due primarily to merger related expenses of $0.8 million in the first quarter of 2014. Total non-interest expense decreased $0.9 million in the first quarter of 2014 compared to the linked quarter. The decrease was primarily related



to $0.7 million of accrued bonuses in the fourth quarter of 2013 issued in connection with the Company's annual incentive plan.

Conference Call Information

Cascade announced on April 30, 2014 in a Form 8-K filed with the SEC that they will conduct a quarterly earnings conference call Thursday, May 8, 2014, at 2:00 p.m. PDT (5:00 p.m. EDT). Terry E. Zink, President and CEO, and Gregory Newton, Executive Vice President and CFO, will discuss first quarter 2014 results and provide an update on recent activities. There will be a question-and-answer session following the presentation. Shareholders, analysts and other interested parties are invited to join the call by dialing (888) 567-1602 a few minutes before 2:00 p.m. Information to be discussed in the teleconference will be available on the Company’s website www.botc.com under the “Investor Information” tab, shortly after the call.

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, operate in Oregon and Idaho markets. Founded in 1977, Bank of the Cascades offers full-service community banking through 28 branches in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. 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 its strategy through the consistent delivery of full relationship banking focused on attracting and retaining value-driven customers. For further information, please visit our website at www.botc.com.

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements about Cascade Bancorp’s plans and anticipated results of operations and financial condition. These statements include, but are not limited to, our plans, objectives, expectations, and intentions and are not statements of historical fact. When used in this report, the word "expects," "believes," "anticipates,” “could,” “may,” “will,” “should,” “plan,” “predicts,” “projections,” “continue” and other 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. Certain risks and uncertainties and Cascade Bancorp’s success in managing such risks and uncertainties could cause actual results to differ materially from those projected, including among others, the following factors: local and national economic conditions could be less favorable than expected or could have a more direct and pronounced effect on us than expected and adversely affect our results of operations and financial condition; the local housing/real estate market could continue to decline for a longer period than we anticipate; the risks presented by a continued economic recession, which could continue to adversely affect credit quality, collateral values, including real estate collateral and OREO properties, investment values, liquidity and loan originations, reserves for loan losses and charge offs of loans and loan portfolio delinquency rates and may be exacerbated by our concentration of operations in the States of Oregon and Idaho generally, and Central, Southern and Northwest Oregon, as well as the greater Boise/Treasure Valley, Idaho area, specifically; interest rate changes could significantly reduce net interest income and negatively affect funding sources; competition among financial institutions could increase significantly; competition or changes in interest rates could negatively affect net interest margin, as could other factors listed from time to time in Cascade Bancorp’s SEC reports; the reputation of the financial services industry could further deteriorate, which could adversely affect our ability to access markets for funding and to acquire and retain customers; and existing regulatory requirements, changes in regulatory requirements and legislation (including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act) and our inability to meet those requirements, including capital requirements and increases in our deposit insurance premium, could adversely affect the businesses in which we are engaged, our results of operations and financial condition. Such forward-looking statements also include, but are not limited to, statements about the benefits of the proposed merger involving Cascade and Home Federal, including future financial and operating results, Cascade’s or Home Federal’s plans, objectives, expectations and intentions, the expected timing of completion of the merger and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated



by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite Cascade and Home Federal shareholder approvals; (ii) the risk that a condition to the closing of the merger may not be satisfied; (iii) the timing to consummate the proposed merger; (iv) the risk that the businesses will not be integrated successfully; (v) the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; (vi) disruption from the transaction making it more difficult to maintain relationships with customers, employees or vendors; (vii) the diversion of management time on merger-related issues; (viii) general worldwide economic conditions and related uncertainties; (ix) liquidity risk affecting Cascade’s ability to meet its obligations when they come due; (x) excessive loan losses; (xi) the effect of changes in governmental regulations; and (xii) other factors we discuss or refer to in the “Risk Factors” section of Cascade’s most recent Annual Report on Form 10-K filed with Securities and Exchange Commission (the “SEC”) on March 31, 2014. These risks, as well as other risks associated with the merger, are more fully discussed in the joint proxy statement/prospectus mailed to stockholders of Cascade and Home Federal on or about April 16, 2014, and included in the Registration Statement on Form S-4 (registration statement number 333-192865), as amended, that was filed with the SEC in connection with the merger. Additional risks and uncertainties are identified and discussed in Cascade’s reports filed with the SEC and available at the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Cascade Bancorp undertakes no obligation to publish revised forward-looking statements to reflect the occurrence of unanticipated events or circumstances after the date hereof. Readers should carefully review all disclosures filed by Cascade Bancorp from time to time with the SEC.

Participants in the Solicitation
Cascade, Home Federal and their respective directors and executive officers may be soliciting proxies from Cascade and Home Federal shareholders in favor of the proposed merger and related matters. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Cascade and Home Federal shareholders in connection with the proposed merger and a description of their direct and indirect interests, by security holdings or otherwise is set forth in the joint proxy statement/prospectus filed with the SEC on April 11, 2014. You can find information about Cascade’s directors and executive officers in Cascade’s definitive proxy statement filed with the SEC on April 28, 2014 for its 2014 Annual Meeting of Shareholders. You can find information about Home Federal’s directors and executive officers in Home Federal’s Form 10-K/A filed with the SEC on April 29, 2014. Additional information about Cascade’s directors and executive officers and Home Federal’s directors and executive officers can also be found in the above-referenced joint proxy statement/prospectus and other relevant materials filed with the SEC. Investors should read the joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You can obtain free copies of these documents from Cascade and Home Federal using the contact information above.

Additional Information about the Proposed Merger and Where to Find It
This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed merger between Cascade and Home Federal, Cascade has filed with the SEC a Registration Statement on Form S-4 (registration statement number 333-192865), which includes a joint proxy statement of Cascade and Home Federal that also constitutes a prospectus. The joint proxy statement/prospectus was mailed to shareholders of Cascade and Home Federal on or about April 16, 2014. Each of Cascade and Home Federal may file other relevant documents concerning the proposed transaction. Cascade and Home Federal urge investors and security holders to read the definitive joint proxy statement/prospectus regarding the proposed merger, as well as other documents filed with the SEC because they will contain important information about the proposed merger. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC’s website (www.sec.gov). You may also obtain these documents, free of charge, from: (i) Cascade’s website (www.botc.com) under the heading “About Us” and then under the heading “Investor Relations” and then under the heading “Investor Information” and then under the tab “SEC Filings;” (ii) Cascade upon written request to Cascade Bancorp, Attn: Investor Relations, 1100 North West Wall Street, P.O. Box 369, Bend, Oregon 97701; (iii) Home Federal’s website (www.myhomefed.com/ir) under the heading “Investor Relations” and then under the heading “SEC Filings;” or (iv) Home Federal upon written request to Home Federal Bancorp, Inc., Attn: Eric Nadeau, 500 12th Avenue South, Nampa, Idaho 83651.




Information contained herein, other than information at December 31, 2013, and for the twelve months then ended, is unaudited. All financial data should be read in conjunction with the notes to the consolidated financial statements of Cascade Bancorp and subsidiary as of and for the fiscal year ended December 31, 2013, as contained in the Company’s Annual Report on Form 10-K for such fiscal year.


# # #



CASCADE BANCORP
 
 
 
 
 
CONSOLIDATED BALANCE SHEETS
 
 
 
 
 
(In thousands) (Unaudited)
 
 
 
 
 
 
March 31, 2014
 
December 31, 2013
 
March 31, 2013
ASSETS
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
Cash and due from banks
$
30,776

 
$
33,300

 
$
31,430

Interest bearing deposits
19,239

 
48,527

 
113,243

Federal funds sold
22

 
22

 
22

Total cash and cash equivalents
50,037

 
81,849

 
144,695

Investment securities available-for-sale
189,752

 
194,481

 
232,672

Investment securities held-to-maturity
1,320

 
1,320

 
1,806

Federal Home Loan Bank (FHLB) stock
9,820

 
9,913

 
10,192

Loans held for sale
4,398

 
10,359

 
1,444

Loans, net
983,925

 
973,618

 
850,765

Premises and equipment, net
32,376

 
32,953

 
34,166

Bank-owned life insurance (BOLI)
36,750

 
36,567

 
35,916

Other real estate owned (OREO), net
2,995

 
3,144

 
5,684

Deferred tax asset (DTA), net
49,477

 
50,068

 

Other assets
13,163

 
11,947

 
11,165

Total assets
$
1,374,013

 
$
1,406,219

 
$
1,328,505

 
 
 
 
 
 
LIABILITIES & STOCKHOLDERS' EQUITY
 

 
 

 
 

Liabilities:
 

 
 

 
 

Deposits:
 

 
 

 
 

Demand
$
450,648

 
$
431,079

 
$
387,451

Interest bearing demand
534,723

 
544,668

 
541,343

Savings
53,443

 
50,258

 
43,419

Time
123,779

 
141,315

 
131,974

Total deposits
1,162,593

 
1,167,320

 
1,104,187

FHLB borrowings

 
27,000

 
60,000

Other liabilities
21,157

 
23,184

 
22,269

Total liabilities
1,183,750

 
1,217,504

 
1,186,456

 
 
 
 
 
 
Stockholders' equity:
 

 
 

 
 

Preferred stock, no par value; 5,000,000 shares authorized; none issued or outstanding

 

 

   Common stock, no par value; 100,000,000 shares authorized
330,988

 
330,839

 
330,150

Accumulated deficit
(141,145
)
 
(142,088
)
 
(191,236
)
Accumulated other comprehensive income
420

 
(36
)
 
3,135

Total stockholders' equity
190,263

 
188,715

 
142,049

Total liabilities and stockholders' equity
$
1,374,013

 
$
1,406,219

 
$
1,328,505





CASCADE BANCORP
 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
(In thousands) (Unaudited)
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31,
 
December 31,
 
2014
 
2013
 
2013
 
2012
Interest income:
 

 
 

 
 
 
 
Interest and fees on loans
$
10,749

 
$
11,238

 
12,053

 
11,601

Interest on investments
1,328

 
1,322

 
1,377

 
1,377

Other investment income
27

 
37

 
72

 
45

Total interest income
12,104

 
12,597

 
13,502

 
13,023

 
 
 
 
 
 
 
 
Interest expense:
 

 


 

 
 
Deposits:
 

 
 

 
 
 
 
Interest bearing demand
175

 
166

 
191

 
179

Savings
4

 
5

 
5

 
5

Time
183

 
333

 
216

 
405

Other borrowings
5

 
474

 
21

 
479

Total interest expense
367

 
978

 
433

 
1,068

 
 
 


 
 
 
 
Net interest income
11,737

 
11,619

 
13,069

 
11,955

Loan loss provision

 

 
 
 
 
Net interest income after loan loss provision
11,737

 
11,619

 
13,069

 
11,955

 
 
 
 
 
 
 
 
Non-interest income:
 

 
 

 
 
 
 
Service charges on deposit accounts
753

 
735

 
786

 
773

Card issuer and merchant services fees, net
1,001

 
751

 
837

 
662

Earnings on bank owned life insurance
183

 
211

 
203

 
271

Mortgage banking income, net
434

 
1,160

 
757

 
1,371

Swap fee income
326

 

 
430

 

Other income
655

 
499

 
931

 
374

Total non-interest income
3,352

 
3,356

 
3,944

 
3,451

 
 
 
 
 
 
 
 
Non-interest expense:
 

 
 

 
 
 
 
Salaries and employee benefits
7,643

 
7,647

 
8,412

 
7,839

Occupancy
1,140

 
1,155

 
1,101

 
1,154

Information Technology
787

 
577

 
563

 
543

Equipment
337

 
368

 
392

 
404

Communications
383

 
366

 
388

 
392

FDIC insurance
232

 
445

 
237

 
471

OREO
(8
)
 
277

 
207

 
891

Professional services
1,332

 
681

 
1,714

 
1,369

Decrease in reserve for unfunded loan commitments

 

 

 
(1,110
)
Other expenses
2,004

 
1,795

 
1,752

 
2,116

Total non-interest expense
13,850

 
13,311

 
14,766

 
14,069

 
 
 
 
 
 
 
 
Income before income taxes
1,239

 
1,664

 
2,247

 
1,337

Income tax benefit (provision)
(296
)
 
32

 
(1,013
)
 
(29
)
Net income
$
943

 
$
1,696

 
$
1,234

 
$
1,308





CASCADE BANCORP
 
 
 
 
 
ADDITIONAL FINANCIAL INFORMATION
 
 
 
 
 
(In thousands, except per share data) (Unaudited)
 
 
 
 
 
 
LINKED QUARTER
 
YEAR OVER YEAR
 
March 31, 2014
December 31, 2013
 
March 31, 2014
March 31, 2013
Share Data
 
 
 
 
Basic net income per common share
$
0.02
 
$
0.03
 
 
$
0.02
 
$
0.04


Diluted net income per common share
$
0.02
 
$
0.03
 
 
$
0.02
 
$
0.04
 
Book value per basic common share
$
4.00
 
$
3.97
 
 
$
4.00
 
$
2.99
 
Basic average shares outstanding
47,233
 
47,588
 
 
47,233
 
47,141
 
Fully diluted average shares outstanding
47,296
 
47,576
 
 
47,296
 
47,254
 
Key Ratios
 
 
 
 
Return on average total shareholders' equity
2.02
%
2.59
%
 
2.02
%
4.84
%
Return on average total assets
0.28
%
0.35
%
 
0.28
%
0.53
%
Net interest spread
3.75
%
4.02
%
 
3.75
%
3.71
%
Net interest margin
3.83
%
4.11
%
 
3.83
%
3.92
%
Total revenue
$
15,089
 
$
17,013
 
 
$
15,089
 
$
14,975
 
Efficiency ratio1 
91.79
%
86.79
%
 
91.79
%
88.89
%
Credit Quality Ratios
 
 
 
 
Reserve for credit losses
$
22,162
 
$
21,297
 
 
$
22,162
 
$
24,988
 
Reserve for credit losses to ending gross loans
2.20
%
2.14
%
 
2.20
%
2.85
%
Non-performing assets (“NPAs”)
$
8,906
 
$
11,453
 
 
$
8,906
 
$
21,902
 
Non-performing assets to total assets
0.65
%
0.81
%
 
0.65
%
1.65
%
Delinquent >30 days to total loans (excl. NPAs)
0.33
%
0.29
%
 
0.33
%
0.61
%
Net Charge off's (“NCOs”)
$
-865
 
$
796
 
 
$
-865
 
$
2,713
 
Net loan charge-offs to average total loans
-0.09
%
0.08
%
 
-0.09
%
0.31
%
Bank Capital Ratios
 
 
 
 
Tier 1 capital leverage ratio
10.89
%
10.49
%
 
10.89
%
10.69
%
Tier 1 risk-based capital ratio
13.21
%
13.01
%
 
13.21
%
14.27
%
Total risk-based capital ratio
14.47
%
14.27
%
 
14.47
%
15.54
%
Bancorp Capital Ratios
 
 
 
 
Tier 1 capital leverage ratio
10.89
%
10.49
%
 
10.89
%
10.72
%
Tier 1 risk-based capital ratio
13.19
%
12.99
%
 
13.19
%
14.31
%
Total risk-based capital ratio
14.45
%
14.25
%
 
14.45
%
15.58
%
1 The efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense by the sum of net interest income and non-interest income. Other companies may define and calculate this data differently.