Cascade Bancorp (CACB, Financial) filed Quarterly Report for the period ended 2009-09-30.
Cascade Bancorp is a financial holding company. Cascade Bancorp has a market cap of $30.1 million; its shares were traded at around $1.07 with and P/S ratio of 0.2. Cascade Bancorp had an annual average earning growth of 21.7% over the past 5 years.
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 time deposits. Non-interest bearing deposits decreased 3.9% from the year ago quarter, but increased modestly to $428.9 million or by $4.0 million compared to the linked-quarter. Customer time deposits increased as did those from internet and brokered sources. The Company is restricted from acquiring additional brokered deposits under the terms of the Order discussed above and is managing its deposit strategy accordingly.
At September 30, 2009, Cascade s loan portfolio was approximately $1.7 billion, down $127.0 million and $374.0 million when compared to the linked-quarter and a year-ago, respectively. Loans have declined primarily due to reduced loan originations, an increase in loan charge-offs and management s strategic loan reduction program that included select loan sales and loan participations as well as non-renewal of mainly transaction only loans where the Company does not consider itself to be the customer s primary bank based upon the overall balance of its banking and deposit relationship with the customer. These actions resulted in lower loan portfolio risk exposure and thereby helped to support regulatory capital ratios.
NPA s decreased to $197.3 million, or 8.7% of total assets compared to $204.1 million or 8.5% of total assets for the linked-quarter and $159.4 million or 7.0% at December 31, 2008, primarily due to charge-offs, sales and valuation adjustments on impaired loans and OREO. The land development portfolio is nearly all classified as NPA. Such loans represent approximately 8% of the Bank s overall loan portfolio but nearly 69% of total NPA s. Because of the uncertain real estate market, no assurances can be given as to the timing of ultimate disposition of such assets or that the sale price will be at or above carrying fair value. The orderly resolution of non-performing loans and OREO properties is a priority for management.
At September 30, 2009 wholesale brokered deposits totaled $167.0 million compared to $159.2 million at December 31, 2008. In addition, local relationship based reciprocal CDARS deposits totaled $68.9 million at September 30, 2009. However, “adequately capitalized” banks are restricted from accessing wholesale brokered deposits. Further, the Order restricts the Bank s ability to accept additional brokered deposits, including the Bank s reciprocal CDAR s program, for which it previously had a temporary waiver from the FDIC. The Bank s internet listing service deposits at September 30, 2009 was approximately $211.1 million compared to $168.1 million at June 30, 2009 and a de minimus balance at year-end 2008. Such deposits are sourced by posting time deposit rates on an internet site where institutions seeking to deploy funds contact the Bank directly to open a deposit account.
Net loss increased $47.6 million for the nine months and increased $13.0 million for the quarter ended September 30, 2009 as compared to the same periods in 2008. These increases were primarily due to elevated level of loan loss provision, a decrease in net interest income and OREO valuation adjustments for each period presented. The loan loss provision increased $46.7 million for the nine months and increased $6.6 million for the quarter ended September 30, 2009 compared to the year ago periods. Net interest income decreased $17.4 million for the nine months and decreased $6.7 million for the quarter ended September 30, 2009 mainly due to lower loan balances and interest reversed and foregone on non performing loans. Non-interest income was up for both periods, due to a one-time gain on the sale of our merchant business of $3.2 million and increased mortgage revenue due to increased refinance activity. Meanwhile non-interest expense increased $17.0 million for the nine months and increased $12.0 million for the quarter ended September 30, 2009, primarily due to expenses related to other real estate owned and legal related costs, offset by a reduction in staffing expenses in the current periods.
Read the The complete ReportCACB is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Cascade Bancorp is a financial holding company. Cascade Bancorp has a market cap of $30.1 million; its shares were traded at around $1.07 with and P/S ratio of 0.2. Cascade Bancorp had an annual average earning growth of 21.7% over the past 5 years.
Highlight of Business Operations:
Cascade 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 OREO valuation charges. Loans were lower mainly due to management s actions to strategically reduce outstanding loans, declining loan originations and increased loan charge-offs. Management actions to lower loan volumes included loan sales or loan participations as well as non-renewal of mainly transaction-only loans where the Company does not consider itself to be the customer s primary bank based upon the overall balance of its banking and deposit relationship with the customer. Non-performing assets (NPA s) were $197.3 million down from $204.1 million in the linked-quarter. 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. Net interest income was lower 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 increased $2.6 million for the three months ended September 30, 2009 compared to 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 described below. Non-interest expenses were higher primarily due to OREO valuation adjustments of approximately $9.0 million and FDIC insurance of $1.8 million for the quarter. OREO and FDIC expenses were $0.4 million and $0.5 million in the year ago third quarter, 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 time deposits. Non-interest bearing deposits decreased 3.9% from the year ago quarter, but increased modestly to $428.9 million or by $4.0 million compared to the linked-quarter. Customer time deposits increased as did those from internet and brokered sources. The Company is restricted from acquiring additional brokered deposits under the terms of the Order discussed above and is managing its deposit strategy accordingly.
At September 30, 2009, Cascade s loan portfolio was approximately $1.7 billion, down $127.0 million and $374.0 million when compared to the linked-quarter and a year-ago, respectively. Loans have declined primarily due to reduced loan originations, an increase in loan charge-offs and management s strategic loan reduction program that included select loan sales and loan participations as well as non-renewal of mainly transaction only loans where the Company does not consider itself to be the customer s primary bank based upon the overall balance of its banking and deposit relationship with the customer. These actions resulted in lower loan portfolio risk exposure and thereby helped to support regulatory capital ratios.
NPA s decreased to $197.3 million, or 8.7% of total assets compared to $204.1 million or 8.5% of total assets for the linked-quarter and $159.4 million or 7.0% at December 31, 2008, primarily due to charge-offs, sales and valuation adjustments on impaired loans and OREO. The land development portfolio is nearly all classified as NPA. Such loans represent approximately 8% of the Bank s overall loan portfolio but nearly 69% of total NPA s. Because of the uncertain real estate market, no assurances can be given as to the timing of ultimate disposition of such assets or that the sale price will be at or above carrying fair value. The orderly resolution of non-performing loans and OREO properties is a priority for management.
At September 30, 2009 wholesale brokered deposits totaled $167.0 million compared to $159.2 million at December 31, 2008. In addition, local relationship based reciprocal CDARS deposits totaled $68.9 million at September 30, 2009. However, “adequately capitalized” banks are restricted from accessing wholesale brokered deposits. Further, the Order restricts the Bank s ability to accept additional brokered deposits, including the Bank s reciprocal CDAR s program, for which it previously had a temporary waiver from the FDIC. The Bank s internet listing service deposits at September 30, 2009 was approximately $211.1 million compared to $168.1 million at June 30, 2009 and a de minimus balance at year-end 2008. Such deposits are sourced by posting time deposit rates on an internet site where institutions seeking to deploy funds contact the Bank directly to open a deposit account.
Net loss increased $47.6 million for the nine months and increased $13.0 million for the quarter ended September 30, 2009 as compared to the same periods in 2008. These increases were primarily due to elevated level of loan loss provision, a decrease in net interest income and OREO valuation adjustments for each period presented. The loan loss provision increased $46.7 million for the nine months and increased $6.6 million for the quarter ended September 30, 2009 compared to the year ago periods. Net interest income decreased $17.4 million for the nine months and decreased $6.7 million for the quarter ended September 30, 2009 mainly due to lower loan balances and interest reversed and foregone on non performing loans. Non-interest income was up for both periods, due to a one-time gain on the sale of our merchant business of $3.2 million and increased mortgage revenue due to increased refinance activity. Meanwhile non-interest expense increased $17.0 million for the nine months and increased $12.0 million for the quarter ended September 30, 2009, primarily due to expenses related to other real estate owned and legal related costs, offset by a reduction in staffing expenses in the current periods.
Read the The complete ReportCACB is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
