Cascade Bancorp has a market cap of $15.5 million; its shares were traded at around $0.55 with and P/S ratio of 0.12. CACB is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:The Company s original market was Central Oregon where in past years, according to the Environmental Systems Research Institute, Inc. and based primarily on U.S. Census data, population has grown in the 96th percentile nationally due largely to in-migration of those seeking the quality of life offered by the region. The Company has grown with the community to a point of holding 26% (excluding broker and internet CDs) deposit market share of the Central Oregon market as of June 30, 2009. In past years, management has sought to augment its banking footprint by expanding into other attractive Northwest markets, including Northwest Oregon, Southern Oregon and Boise/Treasure Valley. At December 31, 2009, loans and deposits in the Northwest and Southern Oregon markets total a combined 38% and 26%, respectively of total Company balances. At December 31, 2009, the Company s Idaho region branches held loans and deposits of approximately 26% and 20%, respectively, of total Company balances. This expansion furthered the diversification of the Company s banking business into two states and multiple markets.
Bank level capital ratios set forth below are substantially higher than the capital ratios at the Company level. This is mainly because regulatory calculations give different treatment to the $66.5 million in Trust Preferred debt proceeds. At the Company level a substantial percentage of Trust Preferred debt is excluded from regulatory capital; while it is fully included at the Bank level. At December 31, 2009, the Company s Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios were 1.11%, 1.48% and 2.95%, respectively, and the Bank s Tier 1 leverage, Tier 1 risk-based capital and total risk-based capital ratios were 3.75%, 4.97% and 6.25%, respectively, which do not meet regulatory benchmarks for “adequately-capitalized”. 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 risk-based capital, respectively. However, as mentioned above, pursuant to the Order, the Bank is required to maintain a Tier 1 leverage ratio of at least 10% to be considered “well-capitalized.”
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