Attached files
| file | filename |
|---|---|
| 8-K - CASCADE BANCORP | v164016_8k.htm |
| EX-10.3 - CASCADE BANCORP | v164016_ex10-3.htm |
| EX-10.1 - CASCADE BANCORP | v164016_ex10-1.htm |
| EX-10.2 - CASCADE BANCORP | v164016_ex10-2.htm |
| EX-99.1 - CASCADE BANCORP | v164016_ex99-1.htm |
October
29, 2009
NEWS
RELEASE
FOR
IMMEDIATE RELEASE
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CONTACT:
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Gregory
D. Newton, EVP, Chief Financial Officer, Cascade Bancorp
(541)
617-3526
Patricia
L. Moss, President & Chief Executive Officer, Cascade
Bancorp
(541)
385-6205
|
CASCADE BANCORP (OREGON)
ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2009
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·
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Third Quarter Net Loss
Per Share: of ($0.45) or ($12.6 million) mainly due to $22
million provision for loan losses compared to net income per share of
$0.01 or $0.3 million a year-ago.
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|
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·
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Total Deposits:
up 4.8% compared to a year-ago primarily in time
deposits.
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·
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Credit Quality:
Reserve for credit losses at 3.21% of total loans; non-performing assets
(NPA’s) at $197.3 million down from $204.1 million for
linked-quarter.
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·
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Total Loans:
down 18.2% compared to a year-ago on strategic reduction
initiative.
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·
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Interest Bearing
Balances held at Federal Reserve Bank: of approximately $294.3
million or 13% of total assets to enhance
liquidity.
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·
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Net Interest
Margin: 3.13% vs. 3.52% in the linked-quarter mainly due to the
affects of increased average balances held at Federal Reserve
Bank.
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BEND,
Oregon, October
29/PRNewswire-First Call/—Cascade Bancorp (“Cascade”) (NASDAQ: CACB)
reported a third quarter 2009 net loss of ($12.6 million) or ($0.45) per share
compared to net income of $0.3 million or $0.01 per share for the year-ago
quarter primarily due to elevated loan loss provision expense, decreased net
interest income, and an increase in noninterest expense due to Other Real Estate
Owned (OREO) valuation charges.
Patricia
L. Moss, CEO, stated “Our Company continues to work through and respond to
economic and industry pressures. Our third quarter 2009 loss was driven by
higher loan loss provision expense and OREO valuation charges, which reflects
continued deterioration of appraised property values underlying certain loans
hard hit by this economic cycle. We remain appreciative of the loyalty of our
customers and community and our proven ability to safeguard their deposits has
resulted in a stabilization of customer deposits. We remain focused on the
successful execution of our strategic initiatives and are encouraged by the
progress in place.”
Consistent
with management strategic actions to lower outstanding loans, at September 30,
2009, Cascade’s loan portfolio declined to approximately $1.7 billion, down
$374.0 million and $127.0 million compared to a year-ago and on a linked-quarter
basis, respectively. Total deposits at September 30, 2009, were $1.8
billion, up 4.8% compared to the year-ago quarter mainly as a result of
increased customer time deposits, as well as from internet and brokered
sources. As to credit quality, the third quarter 2009 provision for
loan losses totaled $22.0 million (pre-tax) with net loan charge-offs of $31.3
million (pre-tax) primarily due to declining real estate appraised
values backing collateral dependent loans. As compared to the prior year the
Bank has increased its level of pooled and unallocated reserves in response to
the challenging economic environment. NPA’s showed signs of
stabilization at $197.3 million down from $204.1 million for the linked-quarter
while delinquent loans improved to 0.28% of the loan portfolio from 0.52% for
the linked-quarter.
Net
interest income decreased to $17.3 million for the third quarter of 2009
primarily due to reduced interest and loan fee income related to the decline in
loan volumes and interest reversed and foregone on
NPA’s. Non-interest income for the third quarter of 2009 increased
$2.6 million from the year-ago level primarily due to a one-time gain recorded
on the sale of the Bank’s credit card merchant business of $3.2
million. Non-interest expense for the third quarter of 2009 increased
$12.0 million from the year-ago level primarily due to OREO valuation
adjustments of approximately $9.0 million and FDIC insurance of $1.3 million for
the quarter.
The net
interest margin (NIM) was 3.13% for the third quarter of 2009 compared to 3.52%
for the linked-quarter and 4.42% in the year-ago quarter. The lower
NIM was primarily due to increases in interest bearing balances held with the
Federal Reserve Bank reducing the margin by approximately 32 basis points
compared to the linked-quarter. In addition, NIM was affected by
approximately 7 basis points due to interest reversals and lost interest income
related to NPA’s.
At
September 30, 2009, the Company’s Tier 1 leverage, Tier 1 risk-based capital and
total risk-based capital ratios were 4.22%, 5.38% and 8.61%, respectively,
meeting the regulatory benchmarks for “adequately capitalized.” These
ratios include a reduction of 80 basis points in the Tier 1 leverage ratio and
102 basis points in the Tier 1 risk-based and total risked-based capital ratios
related to a disallowance of $18.7 million or approximately 54% of the Company’s
deferred tax assets based upon a regulatory accounting calculation standard that
is not directly applicable under generally accepted accounting principles.
Regulatory benchmarks for an “adequately-capitalized” designation are 4%,
4% and 8% for Tier 1 leverage, Tier 1 risk-based capital and total risk-based
capital, respectively; “well capitalized” benchmarks are 5%, 6%, and 10%, for
Tier 1 leverage, Tier 1 risk-based capital and total risked-based capital,
respectively. However, pursuant to the regulatory order entered into
with the Federal Deposit Insurance Corporation, the Bank is required to maintain
a Tier 1 leverage ratio of at least 10% in order to be considered
“well-capitalized.”
Cascade’s
SEC filing of Form 10-Q for the third quarter of 2009 includes substantial
detail and discussion as to the financial results and condition of Cascade as of
and for the quarter ended September 30, 2009 and the reader is encouraged to
review this filing by going to the investor relations tab at
http://www.botc.com or request a copy from Debbie Bleile at
DebbieB@botc.com, (541) 617 – 3513 or by mail at P.O. Box 369, Bend, Oregon
97709.
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, operates in Oregon and Idaho
markets. Founded in 1977, Bank of the Cascades offers full-service
community banking through 32 branches in Central Oregon, Southern Oregon,
Portland/Salem and Boise/Treasure Valley. 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. In December 2008, Bank of the Cascades was named by the
Portland Business Journal as one of Oregon’s Most Admired Companies in the
Financial Services category, as chosen by Oregon CEOs. For further information,
please visit our web site at http://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 the Company’s success in managing such risks and
uncertainties cause actual results to differ materially from those projected,
including among others, the risk factors described in our quarterly report on
Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) for the
quarter ended September 30, 2009 as well as the following factors: our inability
to comply in a timely manner with the cease and desist order with the Federal
Deposit Insurance Corporation (“FDIC”) and the Oregon Division of Finance and
Corporate Securities (“DFCS”), under which we are currently operating, could
lead to further regulatory sanctions or orders, which could further restrict our
operations and negatively affect our results of operations and financial
condition; 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 the Oregon
communities of Central Oregon, Northwest Oregon, Southern Oregon and the greater
Boise area, specifically; we may be compelled to seek additional capital in the
future to augment capital levels or ratios or improve liquidity, but capital or
liquidity may not be available when needed or on acceptable terms; 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 the
Company’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 current regulatory
requirements, changes in regulatory requirements and legislation 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.
These forward-looking statements
speak only as of the date of this release. The Company 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 the Company from time to time
with the SEC.
# # #