Published:
Cascade Bancorp (Oregon) Announces Second Quarter 2008 Net Income of $0.2 Million With Estimated Earnings Per Share at $0.01 With Elevated Provision for Credit Losses
BEND, Ore., July 24 /PRNewswire-FirstCall/ -- Cascade Bancorp ("Cascade")
(Nasdaq: CACB) reported second quarter 2008 Diluted Earnings Per Share
(EPS-diluted) at $0.01 per share compared to $0.36 for the year-ago quarter
and $0.22 for the linked-quarter. Net Income for the second quarter 2008 was
$0.2 million versus $10.2 million a year-ago and down from $6.0 million for
the linked-quarter. Year to date net income is $6.2 million or $0.22 per
share.
Second quarter 2008 earnings include a $12.6 million (pre-tax) provision
for credit losses with net loan charge-offs of $9.9 million (pre-tax).
Accordingly, the Reserve for Credit Losses increased to a solid 1.94% of total
loans at June 30, 2008, up from 1.83% and 1.43% for the linked and year-ago
quarters, respectively. The heightened provision and charge-offs are mainly a
result of collateral valuation declines in the residential development loan
portfolio and compares to the linked-quarter provision and charge-off levels
of $4.5 million and $4.2 million, respectively.
"We are encouraged that core earnings are sufficient to set aside ample
reserves while maintaining strong capital levels," said Patricia L. Moss, CEO.
"Cascade's credit quality issues remain manageable and continue to be largely
confined within its residential acquisition and development loan portfolio.
Our elevated provision for credit losses and charge-offs reflect proactive
recognition and valuation adjustments of challenged credits. We remain
committed to our strategy of prudently preserving capital and focusing on
maintaining strong reserves against possible loan losses."
In addition to a healthy $40.0 million Reserve for Credit Losses -- which
is the primary protection against anticipated loan losses -- the Company's
$162.3 million in tangible capital is a safeguard against future unexpected
challenges. Cascade is designated a "well-capitalized" bank according to
regulatory guidelines with total risk based capital at 11.24% as of June 30,
2008, exceeding the 10% benchmark by a tax-effected margin of approximately
$48.0 million.
QUARTERLY CASH DIVIDEND AT $0.01 PER SHARE:
The Company declared a reduced quarterly cash dividend at $0.01 per share
down from $0.10 paid in the prior quarter. "The Board of Directors is acutely
aware that the cash dividend is valued by our shareholders," said Gary L.
Hoffman, Chairman of the Board of Directors of Cascade Bancorp, "however,
reducing the dividend at this time is a prudent action which underscores our
commitment to preserving capital." This quarterly dividend of $.01 per share
will be payable on August 11, 2008, to shareholders of record as of August 4,
2008.
LOAN PORTFOLIO AND CREDIT QUALITY:
At June 30, 2008, Cascade's Loan Portfolio was $2.07 billion, up 5.5%
compared to a year-ago but up only slightly on a linked-quarter basis.
Continuing to grow credit-worthy loans to relationship customers remains a key
objective in supporting the economy of Cascade's markets. However, management
believes that overall loan growth will likely remain muted until such time as
the real estate cycle runs its course. Because of the nature of its markets,
real estate has historically represented a significant portion of the
Company's overall loan portfolio and is frequently a material component of
collateral for the Company's loans.
Cascade's provision for credit losses was $12.6 million for the second
quarter of 2008 bringing the Reserve for Credit Losses to $40.0 million or
1.94% of total loans at period-end, up from 1.83% at year-end 2007 and 1.43%
for the year-ago quarter. For the quarter ended June 30, 2008, net loan
charge-offs were approximately $9.9 million or 1.93% (annualized) compared to
$4.2 million or 0.81% (annualized) for the linked-quarter. Both the
heightened provision and higher levels of net charge-offs were in recognition
of declining valuations of collateral dependent non-performing and adversely
risk rated loans mainly in the residential land acquisition and development
portfolio.
Improvement was evident in loans delinquent >30 days which fell to 0.19%
of total loans at June 30, 2008, or just $4.1 million compared to 0.43% for
the linked-quarter and 0.47% at year-end 2007. Credit risk metrics with
respect to the commercial real estate (CRE) and commercial (C&I) portfolios
continue to be stable at this time.
Non-Performing Assets (NPA's -- including non performing loans and other
real estate owned) were higher at $127.1 million, or 5.2% of total assets
compared to $96.0 million or 4.0% of total assets for the linked-quarter
primarily due to ongoing challenges in the Company's residential land
acquisition and development loan portfolio. The increase in NPA's included
residential development projects inBoise,Southern Oregon, andCentral
Oregon. See accompanying table for distribution of loans and NPA's by region.
Other real estate owned (OREO) was $33.9 million at June 30, 2008, up from
$26.6 million in the prior quarter. During the quarter the Company sold 15
OREO lots, while approximately $9.1 million in residential land development
assets were added to OREO at estimated liquidation value. Nearly half of the
OREO balance is an occupiedPortland commercial building. The existing tenant
lease payments largely replace interest income previously received on the
underlying loan. The Company carries NPA's at estimated net realizable value
upon liquidation; however, because of the uncertain real estate market, no
assurance can be given that the ultimate disposition of such assets will be at
or above such value. Interest income reversed on non-performing loans during
the quarter ended June 30, 2008, was approximately $0.7 million. The orderly
resolution of non-performing loans as well as expedient disposition of OREO
properties is a priority for management.
Management believes the reserve for credit losses is at an appropriate
level based upon its current evaluation and analysis of portfolio credit
quality and prevailing economic conditions. With uncertainty as to the depth
and duration of the real estate slowdown and its economic effect on the
communities within Cascades' banking markets, assurances cannot be given that
the reserve will be adequate in future periods. Further provisioning and
charge-offs may be required before values stabilize.
DEPOSITS:
Customer Relationship Deposits(1) totaled $1.5 billion at June 30, 2008,
down 5.7% compared to a year-ago and down 5.1% on a linked-quarter basis.
This easing of customer relationship deposits reflects the ongoing economic
impact of the slowing real estate activity in the communities served by
Cascade. Since the peak in the real estate cycle, deposits in real estate
related business accounts show consistent reduction in average and end of
period balances while the number of customers has remained stable. Total
Deposits (which include jumbo CDs and brokered deposit balances) were $1.6
billion at June 30, 2008, down 11.1% compared to a year-ago and down 4.5% on a
linked-quarter basis.
NET INTEREST MARGIN & INTEREST RATE RISK:
Second quarter 2008 Net Interest Margin (NIM) was 4.52% compared to 4.68%
for the linked-quarter, and 5.34% for the year ago quarter. Approximately
one-half of the decline in NIM is a result of interest reversed on
non-performing loans during the quarter, while the remaining compression was
caused by the effects of sharply lower market interest rates driven by Federal
Reserve Bank actions.
Yields on earning assets during the second quarter of 2008 were lower at
6.38% compared to 7.12% in the linked-quarter and down from 8.39% in the year
ago quarter. Lower yields were a result of declining short term market rates
as well as the effect of interest forgone and reversed on non-performing
loans. Lower market rates also advantageously reduced the average cost of
funds paid on interest bearing liabilities which fell to 2.37% for the current
quarter as compared to 3.13% for the linked-quarter and 4.09% for the year ago
quarter. The overall cost of funds (including interest bearing and
non-interest bearing deposits) also improved for the second quarter of 2008 to
1.90% as compared to 2.50% in the linked-quarter and 3.13% for the year ago
period.
Because one of Cascade's strengths is its relatively high proportion of
non-interest bearing deposits, lower interest rates may modestly compress the
Company's NIM as yields decline against an already low cost of funds. See
cautionary "Forward Looking Statements" below and in Cascade's Form 10-K
report for further information on risk factors including interest rate risk.
NON-INTEREST INCOME AND EXPENSE:
Non-Interest Income for the second quarter of 2008 was $5.0 million, down
slightly compared to the year-ago quarter and down modestly from the
linked-quarter mainly as a result of a gain on VISA ownership interest of $0.6
million recorded in the linked-quarter. Service and other fee income
categories were generally flat. Residential mortgage originations totaled
$36.3 million for the current quarter, down 17.5% from $44.0 million in the
linked-quarter and down 29.5% from the year-ago period. Related net mortgage
revenue was $0.6 million in the second quarter of 2008, relatively flat from
the linked-quarter and year-ago periods. Note that the Company has focused on
originating conventional mortgage products throughout its history while
purposefully avoiding sub-prime / option-ARM type products. As a result, the
delinquency rate within Cascade's $511 million portfolio of serviced
residential mortgage loans is only 0.47%, notably below the national mortgage
delinquency rate of 6.35% at June 30, 2008.
Non-Interest Expense for the quarter was down 3.5% compared to the
linked-quarter and up 7.8% from the year-ago period. The Company has seen a
reduction in FTE headcount in tandem with slowing volumes. FTE was 511 at
June 30, 2008, compared to 525 at March 31, 2008, and 559 at year-end 2007.
When compared to the year-ago quarter, expenses were higher mainly due to OREO
and related legal costs. Management anticipates that aside from possible OREO
related charges, non interest expense growth should be very modest for the
balance of 2008.
BUSINESS STRATEGY:
Operating in some of the fastest growing markets in the nation, Cascade
Bancorp (headquartered inBend, Oregon) and its wholly-owned subsidiary, Bank
of the Cascades, operates inOregon andIdaho markets. In terms of banking
growth markets, Cascade ranks as the top community bank footprint in the
Northwest. Cascade has a business strategy that focuses on delivering the
best in community banking for the financial well-being of customers and
shareholders. The Bank implements its strategy by combining outstanding
service, competitive financial products, local expertise and advanced
technology applied for the convenience of customers. Founded in 1977, Bank of
the Cascades offers full-service community banking through 33 branches in
Central Oregon,Southern Oregon,Portland/Salem andBoise/Treasure Valley.
The Bank has been repeatedly named among the top performing banks in the
nation by industry publications. The Bank is honored to be among the top
Oregon "Best 100 Companies to Work For", as compiled by Oregon Business
Magazine. For further information on Bank of the Cascades, please visit our
web site at http://www.botc.com.
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements that are subject to risks
and uncertainties that could cause actual results to differ materially from
those expressed or implied by such forward looking statements. Such risks and
uncertainties may include but are not necessarily limited to general and local
economic conditions, including the residential and commercial real estate
markets; changes in interest rates, including timing or relative degree of
change;, inflation; credit quality and concentrations; competition within the
business areas in which Cascade is conducting its operations; changes in
regulatory conditions or requirements or new legislation; and changes in
accounting policies. These statements include, among others, statements
related to future profitability levels and future earnings. For a discussion
of factors, which could cause results to differ, please see Cascade's reports
on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission
and Cascade's press releases. When used in this release, the words or phrases
such as "will likely result in", "management expects that", "will continue",
"is anticipated", "estimate", "projected", or 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. Readers should not place undue reliance on the
forward-looking statements, which reflect management's view only as of the
date hereof. Cascade undertakes no obligation to publicly revise these
forward-looking statements to reflect subsequent events or circumstances.
(1) Customer relationship deposits include core deposit transaction
accounts such as checking, money market and savings, while excluding
all wholesale or brokered deposits and time deposits greater than
$100,000.
CASCADE BANCORP
Selected Consolidated Financial Highlights
(In thousands, except per share data and ratios; unaudited)
Year over Year
2nd Qtr 2nd Qtr %
Balance Sheet Data (at period end) 2008 2007 Change
Investment securities $90,492 $104,474 -13.4%
Loans, gross 2,066,091 1,959,031 5.5%
Total assets 2,443,888 2,321,103 5.3%
Total deposits 1,586,666 1,785,649 -11.1%
Non-interest bearing deposits 417,076 479,649 -13.0%
Customer relationship deposits (1) 1,454,865 1,543,418 -5.7%
Total shareholders' equity (book) 276,033 276,901 -0.3%
Total shareholders' equity (tangible) 162,275 161,562 0.4%
Income Statement Data
Interest income $34,260 $43,319 -20.9%
Interest expense 10,014 15,775 -36.5%
Net interest income 24,246 27,544 -12.0%
Loan loss provision 12,600 1,000 1160.0%
Net interest income after loan
loss provision 11,646 26,544 -56.1%
Noninterest income 5,008 5,273 -5.0%
Noninterest expense 16,763 15,549 7.8%
Income (loss) before income taxes (109) 16,268 -100.7%
Provision (credit) for income taxes (290) 6,087 -104.8%
Net income $181 $10,181 -98.2%
Share Data
Basic earnings per common share $0.01 $0.36 -98.2%
Diluted earnings per common share $0.01 $0.36 -98.2%
Book value per common share $9.83 $9.72 1.2%
Tangible book value per common share $5.78 $5.67 1.9%
Cash dividends paid per common share $0.10 $0.09 11.1%
Ratio of dividends declared to net
income 1543.04% 25.05% 6060.3%
Basic Average shares outstanding 27,929 28,335 -1.4%
Fully Diluted average shares
outstanding 28,061 28,651 -2.1%
Key Ratios
Return on average total
shareholders' equity (book) 0.26% 15.04% -98.3%
Return on average total shareholders'
equity (tangible) (2) 0.43% 26.20% -98.4%
Return on average total assets 0.03% 1.76% -98.3%
Net interest spread 4.02% 4.30% -6.5%
Net interest margin 4.52% 5.34% -15.4%
Total revenue (net int inc + non
int inc) $29,254 $32,817 -10.9%
Efficiency ratio (3) 57.30% 47.38% 20.9%
Credit Quality Ratios
Reserve for credit losses 40,036 28,010 42.9%
Reserve to ending total loans 1.94% 1.43% 35.5%
Non-performing assets (4) 127,105 9,401 1252.0%
Non-performing assets to total assets 5.20% 0.41% 1184.1%
Delinquent >30 days to total loans 0.19% 0.11% 72.5%
Net Charge off's 9,927 465 2034.8%
Net loan charge-offs (annualized) 1.93% 0.10% 1921.9%
Mortgage Activity
Mortgage Originations $36,296 $51,469 -29.5%
Total Servicing Portfolio (sold loans) $510,727 $494,796 3.2%
Capitalized Mortgage Servicing
Rights (MSR's) $3,810 $3,939 -3.3%
Capital Ratios
Average shareholders' equity to
average assets 11.69% 11.68% 0.1%
Leverage ratio (5) (Est Q2-08) 9.93% 10.30% -3.6%
Total risk-based capital ratio (5)
(Est Q2-08) 11.24% 11.59% -3.0%
Linked Quarter
2nd Qtr 1st Qtr %
Balance Sheet Data (at period end) 2008 2008 Change
Investment securities $90,492 $89,705 0.9%
Loans, gross 2,066,091 2,038,147 1.4%
Total assets 2,443,888 2,406,466 1.6%
Total deposits 1,586,666 1,661,284 -4.5%
Non-interest bearing deposits 417,076 429,436 -2.9%
Customer relationship
deposits (1) 1,454,865 1,532,434 -5.1%
Total shareholders' equity (book) 276,033 279,008 -1.1%
Total shareholders' equity (tangible) 162,275 164,855 -1.6%
Income Statement Data
Interest income $34,260 $38,141 -10.2%
Interest expense 10,014 13,081 -23.4%
Net interest income 24,246 25,060 -3.2%
Loan loss provision 12,600 4,500 180.0%
Net interest income after loan
loss provision 11,646 20,560 -43.4%
Noninterest income 5,008 5,502 -9.0%
Noninterest expense 16,763 17,375 -3.5%
Income (loss) before income taxes (109) 8,687 -101.3%
Provision (credit) for income taxes (290) 2,647 -111.0%
Net income $181 $6,040 -97.0%
Share Data
Basic earnings per common share $0.01 $0.22 -97.0%
Diluted earnings per common share $0.01 $0.22 -97.0%
Book value per common share $9.83 $9.94 -1.1%
Tangible book value per common share $5.78 $5.87 -1.6%
Cash dividends paid per common share $0.10 $0.10 0.0%
Ratio of dividends declared to net
income 1543.04% 46.21% 3239.2%
Basic Average shares outstanding 27,929 27,911 0.1%
Fully Diluted average shares
outstanding 28,061 27,963 0.4%
Key Ratios
Return on average total
shareholders' equity (book) 0.26% 8.65% -97.0%
Return on average total shareholders'
equity (tangible) (2) 0.43% 14.62% -97.1%
Return on average total assets 0.03% 1.01% -97.0%
Net interest spread 4.02% 3.99% 0.8%
Net interest margin 4.52% 4.68% -3.4%
Total revenue (net int inc + non
int inc) $29,254 $30,562 -4.3%
Efficiency ratio (3) 57.30% 56.85% 0.8%
Credit Quality Ratios
Reserve for credit losses 40,036 37,363 7.2%
Reserve to ending total loans 1.94% 1.83% 5.7%
Non-performing assets (4) 127,105 96,040 32.3%
Non-performing assets to total assets 5.20% 3.99% 30.3%
Delinquent >30 days to total loans 0.19% 0.43% -56.3%
Net Charge off's 9,927 4,175 137.8%
Net loan charge-offs (annualized) 1.93% 0.81% 137.9%
Mortgage Activity
Mortgage Originations $36,296 $44,007 -17.5%
Total Servicing Portfolio (sold
loans) $510,727 $502,438 1.6%
Capitalized Mortgage Servicing
Rights (MSR's) $3,810 $3,784 0.7%
Capital Ratios
Average shareholders' equity to
average assets 11.69% 11.69% 0.1%
Leverage ratio (5) (Est Q2-08) 9.93% 10.12% -1.9%
Total risk-based capital ratio (5)
(Est Q2-08) 11.24% 11.37% -1.1%
Notes:
(1) Customer relationship deposits include core deposit transaction
accounts such as checking, money market and savings, while excluding
all wholesale or brokered deposits and time deposits greater than
$100,000.
(2) Excludes goodwill, core deposit intangible and other identifiable
intangible assets, related to the acquisitions of Community Bank of
Grants Pass and F&M Holding Company.
(3) Efficiency ratio is noninterest expense divided by (net interest
income + noninterest income).
(4) Nonperforming assets consist of loans contractually past due 90 days
or more, nonaccrual loans and other real estate owned.
(5) Computed in accordance with FRB and FDIC guidelines.
Total Shares Outstanding as of 6/30/08: 28,075,524
CASCADE BANCORP (CACB)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Year over Year Linked Quarter
2nd Qtr 2nd Qtr % 1st Qtr %
2008 2007 Change 2008 Change
Interest income:
Interest and fees on
loans $33,079 $41,731 -20.7% $36,997 -10.6%
Taxable interest on
investments 1,068 1,340 -20.3% 1,052 1.5%
Nontaxable interest on
investments 53 76 -30.3% 61 -13.1%
Interest on federal
funds sold 10 51 -80.4% 13 -23.1%
Interest on interest bearing
balances from FHLB 1 111 -99.1% 1 0.0%
Dividends on Federal
Home Loan Bank stock 49 10 390.0% 17 188.2%
Total interest income 34,260 43,319 -20.9% 38,141 -10.2%
Interest expense:
Deposits:
Interest bearing demand 3,934 7,338 -46.4% 5,719 -31.2%
Savings 35 51 -31.4% 39 -10.3%
Time 2,469 4,374 -43.6% 3,114 -20.7%
Junior subordinated
debentures and other
borrowings 3,576 4,012 -10.9% 4,209 -15.0%
Total interest expense 10,014 15,775 -36.5% 13,081 -23.4%
Net interest income 24,246 27,544 -12.0% 25,060 -3.2%
Loan loss provision 12,600 1,000 1160.0% 4,500 180.0%
Net interest income after
loan loss provision 11,646 26,544 -56.1% 20,560 -43.4%
Noninterest income:
Service charges on
deposit accounts 2,537 2,491 1.8% 2,402 5.6%
Mortgage loan origination
and processing fees 406 504 -19.4% 453 -10.4%
Gains on sales of
mortgage loans, net 194 257 -24.5% 236 -17.8%
Card issuer and merchant
services fees, net 1,005 1,063 -5.5% 892 12.7%
Earnings on bank-owned
life insurance 287 385 -25.5% 266 7.9%
Other income 579 572 1.4% 1,253 -53.7%
Total noninterest
income 5,008 5,272 -5.0% 5,502 -9.0%
Noninterest expense:
Salaries and employee
benefits 9,093 9,122 -0.3% 9,159 -0.7%
Occupancy & equipment 1,713 1,652 3.7% 1,825 -6.1%
Communications 491 472 4.0% 556 -11.7%
Advertising 348 313 11.2% 325 7.1%
Legal 307 128 139.8% 350 -12.3%
OREO & collection
expenses 1,186 113 949.6% 772 53.6%
Other expenses 3,625 3,748 -3.3% 4,388 -17.4%
Total noninterest
expense 16,763 15,548 7.8% 17,375 -3.5%
Income (loss) before income
taxes (109) 16,268 -100.7% 8,687 -101.3%
Provision (credit) for
income taxes (290) 6,087 -104.8% 2,647 -111.0%
Net income $181 $10,181 -98.2% $6,040 -97.0%
Basic net income per common
share $0.01 $0.36 -98.2% $0.22 -97.0%
Diluted net income per
common share $0.01 $0.36 -98.2% $0.22 -97.0%
CASCADE BANCORP (CACB)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited) Year over Year Linked Quarter
2nd Qtr 2nd Qtr % 1st Qtr %
2008 2007 Change 2008 Change
ASSETS
Cash and cash equivalents:
Cash and due from
banks $63,903 $58,707 8.9% $57,583 11.0%
Interest bearing
balances due from FHLB 39 167 -76.6% 53 -26.4%
Federal funds sold - 469 -100.0% 859 -100.0%
Total cash and cash
equivalents 63,942 59,343 7.7% 58,495 9.3%
Investment securities
available-for-sale 88,279 101,989 -13.4% 86,527 2.0%
Investment securities
held-to- maturity 2,212 2,485 -11.0% 3,178 -30.4%
Federal Home Loan
Bank stock 12,087 6,991 72.9% 10,147 19.1%
Loans, net 2,029,218 1,934,434 4.9% 2,003,947 1.3%
Premises and
equipment, net 36,312 36,935 -1.7% 37,851 -4.1%
Goodwill 105,047 105,047 0.0% 105,047 0.0%
Core deposit
intangible 8,711 10,292 -15.4% 9,106 -4.3%
Bank-owned life
insurance 33,857 32,573 3.9% 33,570 0.9%
Accrued interest and
other assets 64,223 31,014 107.1% 58,598 9.6%
Total
assets $2,443,888 $2,321,103 5.3% $2,406,466 1.6%
LIABILITIES &
STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand $417,076 $479,649 -13.0% $429,436 -2.9%
Interest bearing
demand 832,840 870,264 -4.3% 899,584 -7.4%
Savings 37,204 40,624 -8.4% 36,776 1.2%
Time deposits 299,546 395,112 -24.2% 295,488 1.4%
Total
deposits 1,586,666 1,785,649 -11.1% 1,661,284 -4.5%
Junior
subordinated
debentures 68,558 68,558 0.0% 68,558 0.0%
Federal funds
purchased 87,481 4,905.0 100.0% 39,573 121.1%
Other borrowings 395,986 139,705 183.4% 321,449 23.2%
Customer repurchase
agreements 11,864 20,784 -42.9% 13,408 -11.5%
Accrued interest and
other liabilities 17,300 24,601 -29.7% 23,186 -25.4%
Total
liabilities 2,167,855 2,044,202 6.0% 2,127,458 1.9%
Stockholders' equity:
Common stock, no
par value; 157,706 164,046 -3.9% 157,591 0.1%
Retained earnings 118,224 112,695 4.9% 120,579 -2.0%
Unrealized gains on
investment securities
available-for-sale,
net of deferred
income taxes 103 160 -35.6% 838 -87.7%
Total
stockholders'
equity 276,033 276,901 -0.3% 279,008 -1.1%
Total
liabilities
and
stockholders'
equity $2,443,888 $2,321,103 5.3% $2,406,466 1.6%
CASCADE BANCORP (CACB)
Loan Portfolio & Reserve for Credit Losses
(Dollars in thousands)
(unaudited)
% of % of % of
gross gross gross
Loan portfolio 6/30/2008 loans 3/31/2008 loans 12/31/2007 loans
Commercial $616,121 30% $597,865 29% $606,408 30%
Real Estate:
Construction/lot 649,846 31% 668,190 33% 686,829 34%
Mortgage 89,540 4% 87,773 4% 88,509 4%
Commercial 660,202 32% 633,995 31% 612,694 30%
Consumer 50,382 2% 50,324 2% 47,038 2%
Total loans 2,066,091 100% 2,038,147 100% 2,041,478 100%
Less reserve for
loan losses 36,873 34,200 33,875
Total loans, net $2,029,218 $2,003,947 $2,007,603
Three months ended
June 30,
2008 2007
Reserve for loan losses:
Balance at beginning of period $34,200 $24,062
Loan loss provision 12,600 1,000
Recoveries 368 426
Loans charged off (10,295) (891)
Balance at end of period $36,873 $24,597
Reserve for unfunded commitments:
Balance at beginning of period $3,163 $3,413
Provision (credit) for unfunded commitments - -
Balance at end of period $3,163 $3,413
Reserve for credit losses:
Reserve for loan losses $36,873 $24,597
Reserve for unfunded commitments 3,163 3,413
Total reserve for credit losses $40,036 $28,010
CASCADE BANCORP (CACB)
LOAN BREAKDOWN AND NPA's BY REGION
(Dollars in thousands)
Loan Breakdown by Region as of 6/30/08
% of % of % of
Central gross Northwest gross Southern gross
Loan portfolio Oregon loans Oregon loans Oregon loans
Commercial $192,664 27% $192,897 43% $57,159 23%
Construction/lot 220,840 31% 109,902 25% 75,789 30%
Mortgage 31,515 4% 10,820 2% 7,948 3%
Commercial 250,582 35% 125,233 28% 108,199 43%
Consumer 25,650 4% 6,002 1% 3,786 1%
Total Loans $721,251 100% $444,854 100% $252,881 100%
% of % of
gross gross
Loan portfolio Idaho loans Bank total loans
Commercial $173,400 27% $616,120 30%
Construction/lot 246,880 38% 653,411 31%
Mortgage 31,907 5% 82,191 4%
Commercial 176,188 27% 660,202 32%
Consumer 18,729 3% 54,167 2%
Total Loans $647,105 100% $2,066,091 100%
Non-Performing Assets by Region as of 6/30/08
% of % of % of
total total total
Region 6/30/2008 NPA's 3/31/2008 NPA's 12/31/2007 NPA's
Central Oregon $27,603 22% $5,560 6% $5,740 10%
Northwest Oregon 17,513 14% 17,542 18% 1,615 3%
Southern Oregon 26,190 21% 28,822 30% 22,793 41%
Total Oregon $71,306 56% $51,924 54% $30,148 54%
Idaho 55,799 44% 44,116 46% 25,397 46%
Grand total $127,105 100% $96,040 100% $55,545 100%
CASCADE BANCORP (CACB)
CONSTRUCTION/LOT BREAKDOWN BY REGION
(Dollars in thousands)
% of
Constr /
% of lot % of
cate- port- gross
6/30/2008 gory folio loans 12/31/2007
Residential Land Development:
Raw Land $105,926 36% 16% 5% $107,160
Land Development 170,889 57% 26% 8% 183,809
Speculative Lots 21,240 7% 3% 1% 20,916
$298,055 100% 46% 14% $311,885
Geographic distribution by
region:
Central Oregon $102,029 34% 16% 5% $107,150
Northwest Oregon 5,525 2% 1% 0% 5,328
Southwest Oregon 25,461 9% 4% 1% 32,541
Total Oregon 133,015 45% 20% 6% 145,019
Idaho 165,040 55% 25% 8% 166,866
Grand total $298,055 100% 46% 14% $311,885
Residential Construction:
Pre sold $64,569 50% 10% 3% $64,245
Lots 18,820 15% 3% 1% 20,575
Speculative Construction 44,755 35% 7% 2% 58,048
$128,144 100% 20% 6% $142,868
Geographic distribution by
region:
Central Oregon $51,682 40% 8% 3% $52,316
Northwest Oregon 30,771 24% 5% 1% 31,652
Southwest Oregon 9,696 8% 1% 0% 14,252
Total Oregon 92,149 72% 14% 4% 98,220
Idaho 35,995 28% 6% 2% 44,648
Grand total $128,144 100% 20% 6% $142,868
Commercial Construction:
Owner occupied $47,440 21% 7% 2% $61,298
Lots 12,792 6% 2% 1% 17,525
Non-owner occupied 135,230 60% 21% 7% 125,740
Speculative Lots 31,750 14% 5% 2% 30,815
$227,212 100% 35% 11% $235,378
Geographic distribution by
region:
Central Oregon $67,129 30% 10% 3% $68,880
Northwest Oregon 73,606 32% 11% 4% 81,683
Southwest Oregon 40,632 18% 6% 2% 39,235
Total Oregon 181,367 80% 28% 9% 189,798
Idaho 45,845 20% 7% 2% 45,580
Grand total $227,212 100% 35% 11% $235,378
CASCADE BANCORP (CACB)
ADDITIONAL FINANCIAL INFORMATION
(In thousands)
(unaudited)
Year over Year Linked Quarter
2nd Qtr 2nd Qtr % 1st Qtr %
Three Months Ended: 2008 2007 Change 2008 Change
Average Assets $2,412,508 $2,323,973 3.8% $2,397,006 0.6%
Average Loans 2,058,327 1,949,480 5.6% 2,059,862 -0.1%
Average Deposits 1,642,401 1,729,424 -5.0% 1,687,308 -2.7%
Average Investment
Securities 87,844 107,821 -18.5% 85,700 2.5%
Average Other Earning
Assets 12,680 19,163 -33.8% 9,410 34.8%
Average Non Interest
Bearing Deposits 414,130 474,598 -12.7% 415,636 -0.4%
Average Customer
Relationship Deposits 1,642,401 1,493,336 10.0% 1,542,082 6.5%
Average Earnings Assets 2,158,851 2,076,464 4.0% 2,154,972 0.2%
Average Interest
Bearing Liabilities 1,695,171 1,548,405 9.5% 1,677,915 1.0%
Average Borrowings 466,901 293,579 59.0% 405,234 15.2%
Average Common Equity
(book) 282,084 271,437 3.9% 280,092 0.7%
Average Common Equity
(tangible) 168,093 155,859 7.8% 165,703 1.4%
June 30, June 30, % December 31, %
Balances as of: 2008 2007 Change 2007 Change
Mortgage loans held for sale $875 $3,300 -73.5% $4,306 -79.7%
Intangibles & goodwill 113,758 115,339 -1.4% 114,549 -0.7%
Loans past due >90 days,
not on non-accrual 51 - 51 0.0%
Loans on non-accrual
status 93,110 8,070 1053.8% 45,865 103.0%
Total non-performing Loans 93,162 8,070 1054.4% 45,916 102.9%
OREO 33,943 1,331 2459.0% 9,765 248.8%
Total Non-performing
assets 127,105 9,401 1253.3% 55,681 128.5%
Shares Outstanding (actual) 28,076 28,478 -1.4% 28,034 0.1%
SOURCE Cascade Bancorp
Copyright © 2009, PRNewswire
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Copyright © 2009, NewsBlaze,
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