Cascade Bancorp (CACB, Financial) filed Amended Quarterly Report for the period ended 2008-09-30.
Cascade Bancorp is a financial holding company. Cascade Bancorp has a market cap of $201.39 million; its shares were traded at around $7.07 with a P/E ratio of 16.2 and P/S ratio of 1.05. The dividend yield of Cascade Bancorp stocks is 0.56%. Cascade Bancorp had an annual average earning growth of 21.7% over the past 5 years.
Management believes Cascade s credit quality issues continue to be largely confined within the residential development portfolio, which represents approximately 13% of total loans. Accordingly, third quarter 2008 includes a $15.4 million (pre-tax) provision for credit losses and net loan charge-offs of $8.2 million (pre-tax) mainly related to the residential development portfolio. As a result of the heightened provision, the reserve for credit losses increased to nearly $51 million or a solid 2.48% of total loans, up from 2.22% and 1.37% for the linked-quarter and year-ago period, respectively. In addition to its strong reserves, the Company has $163.3 million in tangible capital and is designated a “well-capitalized” bank according to regulatory guidelines with estimated total risk-based capital at 11.31% as of September 30, 2008, exceeding the 10% benchmark by a tax-effected margin of approximately $47.4 million. Further, Cascade s pre-tax, pre-provision earnings are in the top 15% of banks in the nation its size. With the uncertainty in national and global economic outlook no assurance can be given that increased credit quality stress will not occur in the Bank s loan portfolios.
NPA s (including non-performing loans and certain other real estate owned (OREO)) were modestly lower at $109.1 million, or 4.5% of total assets compared to $127.1 million or 5.2% of total assets for the linked-quarter. NPA s are primarily related to the Company s residential land acquisition and development loan portfolio. The decrease in NPA s primarily resulted largely from reclassification of a previously reported non performing OREO to a performing status as discussed below.
OREO was $37.2 million at September 30, 2008 compared to $33.9 million in the prior quarter. During the quarter the Company sold 10 OREO lots, while approximately $5.5 million in assets were added to OREO at estimated fair value, primarily in residential land development assets. Note that beginning with the third quarter approximately $16.2 million of OREO balance is not classified as non-performing because it was determined that the commercial building revenues being received on a particular OREO property exceeded the interest income previously received on the underlying loan. Apart from this adjustment, NPA s were slightly lower as compared to the prior quarter.
Customer relationship deposits1 continued to ease during the third quarter reflecting the slowing economy. Such deposits totaled $1.4 billion at September 30, 2008, down 12.6% compared to a year-ago and down 3.1% on a linked-quarter basis. Total deposits were $1.8 billion at September 30, 2008, down 1.9% compared to a year-ago but up 10.8% on a linked-quarter basis primarily due to increased brokered time deposits. At September 30, 2008 such deposits totaled $211.6 million as compared to $24.7 million at December 31, 2007. Note that Cascade s proportion of time deposits to total deposits continues to remain well below its peer banks because of its focus on relationship deposits.
Net income decreased $26.7 million (or 89.9%) for the nine months and decreased $9.7 million (or 96.5%) for the three months ended September 30, 2008 as compared to the same periods in 2007. These decreases were primarily due to an elevated level of loan loss provisioning for each period presented. Net interest income decreased $8.5 million for the nine months and decreased $3.8 million for the quarter ended September 30, 2008. Non-interest income and non-interest expenses were up slightly for the nine months ended September 30, 2008, meanwhile non-interest income increased 6.4% for the quarter primarily resulting from approximately $0.4 million in gains on sales of investment securities and $0.3 million in realized revenue on a performing OREO property as previously mentioned in this report.
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10-year financial history of CACB.
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Cascade Bancorp is a financial holding company. Cascade Bancorp has a market cap of $201.39 million; its shares were traded at around $7.07 with a P/E ratio of 16.2 and P/S ratio of 1.05. The dividend yield of Cascade Bancorp stocks is 0.56%. Cascade Bancorp had an annual average earning growth of 21.7% over the past 5 years.
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Cascade reported third quarter 2008 diluted earnings per share (EPS-diluted) at $0.01 per share compared to $0.35 for the year-ago quarter and ($0.12) for the linked-quarter. The Company reported positive net income for the third quarter 2008 of $0.3 million versus $10.0 million a year-ago and up from a loss of $3.4 million for the linked-quarter. Year- to-date net income is $3.0 million or $0.11 per share.Management believes Cascade s credit quality issues continue to be largely confined within the residential development portfolio, which represents approximately 13% of total loans. Accordingly, third quarter 2008 includes a $15.4 million (pre-tax) provision for credit losses and net loan charge-offs of $8.2 million (pre-tax) mainly related to the residential development portfolio. As a result of the heightened provision, the reserve for credit losses increased to nearly $51 million or a solid 2.48% of total loans, up from 2.22% and 1.37% for the linked-quarter and year-ago period, respectively. In addition to its strong reserves, the Company has $163.3 million in tangible capital and is designated a “well-capitalized” bank according to regulatory guidelines with estimated total risk-based capital at 11.31% as of September 30, 2008, exceeding the 10% benchmark by a tax-effected margin of approximately $47.4 million. Further, Cascade s pre-tax, pre-provision earnings are in the top 15% of banks in the nation its size. With the uncertainty in national and global economic outlook no assurance can be given that increased credit quality stress will not occur in the Bank s loan portfolios.
NPA s (including non-performing loans and certain other real estate owned (OREO)) were modestly lower at $109.1 million, or 4.5% of total assets compared to $127.1 million or 5.2% of total assets for the linked-quarter. NPA s are primarily related to the Company s residential land acquisition and development loan portfolio. The decrease in NPA s primarily resulted largely from reclassification of a previously reported non performing OREO to a performing status as discussed below.
OREO was $37.2 million at September 30, 2008 compared to $33.9 million in the prior quarter. During the quarter the Company sold 10 OREO lots, while approximately $5.5 million in assets were added to OREO at estimated fair value, primarily in residential land development assets. Note that beginning with the third quarter approximately $16.2 million of OREO balance is not classified as non-performing because it was determined that the commercial building revenues being received on a particular OREO property exceeded the interest income previously received on the underlying loan. Apart from this adjustment, NPA s were slightly lower as compared to the prior quarter.
Customer relationship deposits1 continued to ease during the third quarter reflecting the slowing economy. Such deposits totaled $1.4 billion at September 30, 2008, down 12.6% compared to a year-ago and down 3.1% on a linked-quarter basis. Total deposits were $1.8 billion at September 30, 2008, down 1.9% compared to a year-ago but up 10.8% on a linked-quarter basis primarily due to increased brokered time deposits. At September 30, 2008 such deposits totaled $211.6 million as compared to $24.7 million at December 31, 2007. Note that Cascade s proportion of time deposits to total deposits continues to remain well below its peer banks because of its focus on relationship deposits.
Net income decreased $26.7 million (or 89.9%) for the nine months and decreased $9.7 million (or 96.5%) for the three months ended September 30, 2008 as compared to the same periods in 2007. These decreases were primarily due to an elevated level of loan loss provisioning for each period presented. Net interest income decreased $8.5 million for the nine months and decreased $3.8 million for the quarter ended September 30, 2008. Non-interest income and non-interest expenses were up slightly for the nine months ended September 30, 2008, meanwhile non-interest income increased 6.4% for the quarter primarily resulting from approximately $0.4 million in gains on sales of investment securities and $0.3 million in realized revenue on a performing OREO property as previously mentioned in this report.
Read the The complete ReportMore on CACB:
Gurus buys and sells of CACB
10-year financial history of CACB.
Insider buys/sells of CACB.
