Exhibit 10.5

                                 JULY 2003
                           EMPLOYMENT AGREEMENT
                                 EXTENSION


     This Agreement is made this 23rd of July 2003, and extends the Employment
Agreement dated March 26, 2002 (hereafter "the Employment Agreement"), by and
between CASCADE BANK, a State Chartered Banking Institution (hereafter
"Cascade" or "Employer") and CAROL KOBUKE NELSON (hereafter called "Employee")
Employer and Employee are sometimes collectively referred to herein as the
"Parties."

     W I T N E S S E T H:

     WHEREAS, Employer's Board of Directors desire to extend the employment
agreement wherein Employee serves as President and Chief Executive Officer
pursuant to the terms and conditions of the Employment Agreement; and

     WHEREAS, Employee desires to remain employed by Employer pursuant to the
terms and conditions of the Employment Agreement and this extension thereto;

     NOW, THEREFORE, for and in consideration of the mutual promises hereafter
set forth, the sufficiency of which is acknowledged, the Parties agree as
follows:

     1.  One-Year Extension to Employment Agreement.

     The Employment Agreement dated March 26, 2002 shall be extended through
December 31, 2005.

     2.  Compensation and Bonuses During Extension Period.

     Employer shall pay Employee an annual base salary and bonus as set forth
the Employment Agreement through December 31, 2004 in accordance with that
agreement.  For the term of this extension (January 1, 2005 through January 31,
2005) Employee will be compensated as follows:

     (a) An annual base salary in an amount established by the Compensation
         Committee of the Board of Directors (who will review and establish a
         base salary for Employee on an annual basis during the term of the
         Employment Agreement and this Extension) and which base salary shall
         not be less than Two Hundred Ten Thousand Dollars ($210,000.00),
         payable in equal installments, not less than monthly during the year;

     (b) A bonus equal one and one-half percent (1 1/2%) of Cascade Bank's Net
         Profit Before Taxes (exclusive of all extraordinary gains and losses
         and calculated after deducting bonuses of all employees) for the
         period of January 1, 2005 through December 31, 2005.  Employer shall

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         advance to Employee a portion of said bonus in the sum of Twenty-Five
         Thousand Dollars ($25,000.00) per quarter for each of the first three
         quarters of 2005, and the balance paid immediately following the
         public release of yearend earning results. Provided, if Employee has
         received advance payments that exceed the total bonus earned
         hereunder, Employee shall immediately repay to Employer the amount of
         the excess.

     3.  Balance of Employment Agreement to Remain in Force During Term of
         Extension.

     All other terms, provisions, and agreements contained in the Employment
Agreement shall continue in full force and effect through the term of this
extension.

     IN WITNESS WHEREOF, Employer has caused this Agreement to be executed by
its duly authorized Board Representative and Employee has signed this
Agreement.

EMPLOYER                                         EMPLOYEE
CASCADE BANK
By: /s/ Frank M. McCord                          /s/ Carol Kobuke Nelson
    ----------------------------------           -----------------------
    Frank M. McCord                              Carol Kobuke Nelson
    Chairman of the Board of Directors

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