Bank of the Cascades' capital infusion hailed

Hammered by the economic downturn and the near collapse of the real estate market in Central Oregon, Bank of the Cascades has weathered some of the most trying times the banking industry has seen since the Great Depression.

Ordered by the federal government to raise capital, the bank's parent company, Cascade Bancorp, recently announced the $177 million capital raise with four leading investors acting independently. Private placement investors who have entered into separate agreements with Cascade Bancorp include: David F. Bolger, an affiliate of Lightyear Fund II, L.P., private equity funds affiliated with Leonard Green & Partners, L.P., and private equity funds affiliated with WL Ross & Co. LLC.

The capital infusion, once approved by shareholders and the Federal Reserve Bank, will be one of the few in the country to be accomplished without government bailout or Troubled Asset

Relief Program (TARP) funds.

The news has been applauded in the Sisters Country.

"It looks very positive," Sisters Economic Development Manager Mac Hay told The Nugget. "I will continue to work with local banks when we have businesses that are looking for financing."

Such local sources of financing are critical to his mission, Hay says, and he has made Bank of the Cascades aware of that.

"I definitely think it's (important)," he said. "I want to feel comfortable turning a business over to (a bank)."

"The capital raise is a welcome infusion of optimism during a challenging economic time in our community," said Bill Willitts, owner of FivePine Lodge and Conference Center in Sisters. "It's a remarkable vote of confidence from the bank's investors. It not only speaks to the value and viability of Bank of the Cascades, but as a local business owner and resident, I see it as a demonstration of a belief in the economic future of our communities as well. This news has brought a smile and renewed confidence to many."