Cascade Bancorp (CACB, Financial) filed Quarterly Report for the period ended 2012-09-30.
Cascade Bancorp has a market cap of $234.2 million; its shares were traded at around $4.77 with and P/S ratio of 3.
The following tables set forth for the three and nine months ended September 30, 2012 and 2011 information with regard to average balances of assets and liabilities, as well as total dollar amounts of interest income from interest-earning assets and interest expense on interest-bearing liabilities, resultant average yields or rates, net interest income, net interest spread and net interest margin for the Company (dollars in thousands):
Non-interest income in the third quarter of 2012 was $3.2 million as compared to $2.8 million a year earlier. The year-over-year increase in non-interest income related to mortgage revenue resulting from increased residential mortgage origination volumes and related revenues. Non-interest income for the nine months ended September 30, 2012 increased $1.3 million from the nine months ended September 30, 2011 due to a $2.7 million increase in mortgage banking income partially offset by a decrease in service charges on deposit accounts of $1.0 million and decreased BOLI earnings of $157 thousand. The decreased service charges earned on deposit accounts is a result of lower transaction volume and regulatory changes enacted in 2011.
The objective of the Bank’s liquidity management is to maintain ample cash flows to meet obligations for depositor withdrawals, to fund the borrowing needs of loan customers, and to fund ongoing operations. At September 30, 2012, liquid assets of the Bank are mainly interest bearing balances held at FRB totaling $50.1 million compared to $88.8 million at December 31, 2011. The decline was a result of an anticipated reduction in deposits in the second quarter of 2012 related to movement of municipal deposits to the Oregon State Treasury sponsored municipal fund investment pool as well as purchasing investment securities available for sale to deploy cash into earning assets.
Bancorp is a single bank holding company and the principal source of Bancorp’s cash revenues historically has been dividends received from the Bank. Oregon banking laws impose certain limitations on the payment of dividends by Oregon state chartered banks. The amount of the dividend may not be greater than the Bank’s unreserved retained earnings, deducting from that, to the extent not already charged against earnings or reflected in a reserve, the following: (1) all bad debts, which are debts on which interest is past due and unpaid for at least nine months, unless the debt is fully secured and in the process of collection; (2) all other assets charged off as required by the Director of the Department of Consumer and Business Services or a state or federal examiner; and (3) all accrued expenses, interest and taxes of the institution. Since the Bank currently has retained earnings that are a negative $234.3 million, the Bank will not under Oregon law be able to pay any dividends until it has had sufficient positive earnings to return its negative retained earnings to a positive number or regulators permit the Bank to apply part of its paid-in capital to reduce the deficit in retained earnings. In addition, pursuant to the Order, the Bank is required to seek permission from its regulators prior to payment of cash dividends on its common stock.
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Cascade Bancorp has a market cap of $234.2 million; its shares were traded at around $4.77 with and P/S ratio of 3.
Highlight of Business Operations:
Interest income in the third quarter of 2012 decreased $2.7 million compared to the third quarter of 2011. The decrease in the third quarter of 2012 and year over year is mainly due to lower average earning loan balances. Partially offsetting this decline in interest income was an increase in volume of lower yielding securities as a percent of total earning assets, and lower interest reversed on non-performing loans in the same period a year ago.The following tables set forth for the three and nine months ended September 30, 2012 and 2011 information with regard to average balances of assets and liabilities, as well as total dollar amounts of interest income from interest-earning assets and interest expense on interest-bearing liabilities, resultant average yields or rates, net interest income, net interest spread and net interest margin for the Company (dollars in thousands):
Non-interest income in the third quarter of 2012 was $3.2 million as compared to $2.8 million a year earlier. The year-over-year increase in non-interest income related to mortgage revenue resulting from increased residential mortgage origination volumes and related revenues. Non-interest income for the nine months ended September 30, 2012 increased $1.3 million from the nine months ended September 30, 2011 due to a $2.7 million increase in mortgage banking income partially offset by a decrease in service charges on deposit accounts of $1.0 million and decreased BOLI earnings of $157 thousand. The decreased service charges earned on deposit accounts is a result of lower transaction volume and regulatory changes enacted in 2011.
The objective of the Bank’s liquidity management is to maintain ample cash flows to meet obligations for depositor withdrawals, to fund the borrowing needs of loan customers, and to fund ongoing operations. At September 30, 2012, liquid assets of the Bank are mainly interest bearing balances held at FRB totaling $50.1 million compared to $88.8 million at December 31, 2011. The decline was a result of an anticipated reduction in deposits in the second quarter of 2012 related to movement of municipal deposits to the Oregon State Treasury sponsored municipal fund investment pool as well as purchasing investment securities available for sale to deploy cash into earning assets.
Bancorp is a single bank holding company and the principal source of Bancorp’s cash revenues historically has been dividends received from the Bank. Oregon banking laws impose certain limitations on the payment of dividends by Oregon state chartered banks. The amount of the dividend may not be greater than the Bank’s unreserved retained earnings, deducting from that, to the extent not already charged against earnings or reflected in a reserve, the following: (1) all bad debts, which are debts on which interest is past due and unpaid for at least nine months, unless the debt is fully secured and in the process of collection; (2) all other assets charged off as required by the Director of the Department of Consumer and Business Services or a state or federal examiner; and (3) all accrued expenses, interest and taxes of the institution. Since the Bank currently has retained earnings that are a negative $234.3 million, the Bank will not under Oregon law be able to pay any dividends until it has had sufficient positive earnings to return its negative retained earnings to a positive number or regulators permit the Bank to apply part of its paid-in capital to reduce the deficit in retained earnings. In addition, pursuant to the Order, the Bank is required to seek permission from its regulators prior to payment of cash dividends on its common stock.
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