Cascade Bancorp is a financial holding company. Its principal subsidiary is the Bank of the Cascades (the Bank). The Bank is a community bank offering a full range of financial services to its business and consumer clients, including residential mortgage, trust and investments. As of December 31, 2002, the Company had total consolidated assets of approximately $578 million, net loans of approximately $492 million and deposits of approximately $502 million. The Companys loan portfolio grew 18.4% to $500.9 million as of December 31, 2002. Approximately 70% of loan growth was generated in Central Oregon and 30% from the Salem/Keizer area. Loan growth was concentrated in commercial and industrial loans, up $32.3 million, or 43.3%, while the commercial real estate portfolio grew $43.3 million, or 26.2%. The Company generates substantially all of its loans and deposits from customers located within the Central Oregon and Salem service areas.