EX-99.1 2 d72338_ex99-1.htm PRESS RELEASE

Exhibit 99.1

(CASCADE LOGO)

July 17, 2007

NEWS RELEASE

FOR IMMEDIATE RELEASE

 

 

CONTACT:

Gregory D. Newton, EVP, Chief Financial Officer, Cascade Bancorp

 

(541) 617-3526

 

Patricia L. Moss, President & Chief Executive Officer, Cascade Bancorp

 

(541) 385-6205

CASCADE BANCORP (OREGON) (NASDAQ: CACB) ANNOUNCES SECOND QUARTER RESULTS: EARNINGS PER SHARE AT $0.36 UP 7.6% VS YEAR AGO QUARTER AND 28.8% ON A LINKED QUARTER BASIS (ANNUALIZED); LOAN AND DEPOSIT VOLUMES SOLID AND NET INTEREST MARGIN STABILIZES

 

 

•

Earnings Per Share: at $0.36 up 7.6% year-over-year and compared to $0.33 for the immediately preceding (linked) quarter

 

 

•

Net Income: up 13.0% year-over-year at $10.2 million compared to $9.5 million for the linked-quarter

 

 

•

Net Interest Margin: stable at 5.34% for the quarter

 

 

•

Loan Growth: up 10.8% year-over-year and 5.6% on linked-quarter basis (annualized)

 

 

•

Average Customer Relationship Deposits: up 8.0% on a linked-quarter basis (annualized)

 

 

•

Credit Quality: Loan portfolio continues solid with relatively stable delinquencies, NPA’s and net charge-offs

 

 

•

Name Change: Farmers & Merchants, a Bank of the Cascades Company in Idaho changes name to Bank of the Cascades

FINANCIAL PERFORMANCE:

BEND, Ore, July 17/PRNewswire-First Call/—Cascade Bancorp (“Cascade”) (NASDAQ: CACB) reported second quarter 2007 Diluted Earnings Per Share (EPS) at $0.36 per share and up 7.6% from the $0.33 reported for the same quarter in 2006. The current quarter results were also up 28.8% (annualized) from the $0.33 per share earned in the immediately preceding (linked) quarter. Net Income for the period was $10.2 million versus $9.0 million for the year ago quarter and $9.5 million for the linked quarter. At 5.34%, the net interest margin was unchanged from the prior quarter. While end of period total deposit balances were modestly below the preceding quarter, Average customer relationship deposits were up 8.0% on a linked-quarter basis (annualized). The Company


defines customer relationship deposits to include core deposit transaction accounts such as checking, money market, and savings but excluding all wholesale or brokered deposits and CD’s greater than $100,000. Return on Equity was 14.1% for the second quarter of 2007 and Return on Assets was 1.76%.

“We are proud of our financial results in the current quarter,” said Patricia L. Moss, President and CEO. “The Company is focused on effectively managing to current market conditions while positioning ourselves for long term opportunities in our fast growing markets.” She added, “We are pleased with our stabilizing loan, deposit and margin trends as well as progress in building customer relationships.”

LOAN GROWTH AND CREDIT QUALITY:

At June 30, 2007, Cascade’s Loan Portfolio was $2.0 billion, up 10.8% compared to the year ago period. Loan growth during the current quarter was approximately $27.1 million or 5.6% on a linked-quarter basis (annualized). Loan growth was evident in both commercial and construction loan types.

Credit quality metrics remain solid at June 30, 2007, with net loan charge-offs at 0.10% (annualized) of total loans as compared to 0.12% for the linked-quarter, and compared to 0.12% on average over the past year. Meanwhile delinquent loans greater than 30 days past due were at 0.11% of total loans compared to 0.05% for the linked-quarter, and 0.13% on average over the past year. Non-performing assets (NPA’s) were modestly higher at $9.4 million at June 30, 2007, compared to $7.7 million for prior quarter and $3.0 million at year-end 2006.

“Credit quality in Cascade’s loan portfolio is solid despite the past several quarters of slowing real estate activity,” said Frank R. Weis, EVP and Chief Credit Officer. “As we enter the strongest home selling period of the year, inventories of unsold listed homes in Cascades’ banking footprint average about 10 months compared to 8.9 months nationally. While short term sales results are uncertain, the long-term demand for housing in Cascade’s attractive markets suggest a period of orderly inventory adjustment as builders and developers adapt their business plans and pricing to reflect the changing pace of real estate activity.”


The Reserve for Credit Losses (reserve for loan losses and unfunded commitments) was stable at 1.43% of total loans at June 30, 2007, compared to 1.42% at December 31, 2006, and 1.37% a year earlier. Of this aggregate amount, the portion classified as a reserve for unfunded commitments is approximately 0.17% of gross loans. This amount is recorded as a separate liability in the accompanying financial statements. Cascade’s loan loss provision was $1.0 million for the second quarter of 2007 compared to $1.2 million in the year ago period and $1.1 million for the linked-quarter. Management believes reserves are at an appropriate level based upon its evaluation and analysis of portfolio credit quality and prevailing economic conditions.

DEPOSIT GROWTH:

At June 30, 2007, Total Deposits were $1.8 billion, up 8.8% compared to a year ago but were lower by 2.0% on a linked-quarter basis (annualized). While period-end deposits fell modestly between the first and second quarter, average customer relationship deposit increased $29.3 million or 8.0% (annualized) between periods. The Company defines customer relationship deposits to include core deposit transaction accounts such as checking, money market, and savings while excluding all wholesale or brokered deposits and CD’s greater than $100,000. Non-interest bearing deposits averaged $474.6 million, only $4.1 million below the prior quarter average.

NET INTEREST MARGIN & INTEREST RATE RISK:

Cascade’s net interest margin (NIM) was stable at 5.34% for the second quarter of 2007 unchanged from the linked-quarter. This stabilization occurred after three successive quarters where the NIM had fallen an average of 17 basis points per quarter, largely caused by declining deposit balances held by real estate related business customers.

Yields on earning assets during the second quarter of 2007 were higher at 8.39% compared to 8.31% in the immediately preceding quarter and 7.95% in the year ago quarter. Higher yields were largely offset by an increase in overall cost of funds which continues to be pressured by pricing competition and the flat yield curve environment. The average cost of funds paid on interest bearing liabilities for the second quarter of 2007 was 4.09% as compared to 4.00% in the preceding quarter and 3.05% for the year ago quarter. Looking forward,


management expects the NIM may continue to ease as a result of ongoing competitive pricing pressures and a persistent flat yield curve that can affect both rate and mix of funding sources.

The NIM can also be affected by factors beyond market interest rates, including loan or deposit volume shifts and/or aggressive rate offerings by competitor institutions. Cascade’s financial model indicates a relatively stable interest rate risk profile within a reasonable range of rate movements around the forward rates currently predicted by financial markets. Because of its relatively high proportion of non-interest bearing funds, Cascade’s NIM is most adversely affected in the event short term market rates fall to a very low level. See cautionary “Forward Looking Statements” below and 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 2007 was $5.3 million, 20.9% above the year ago period and as compared to $5.5 million on a linked-quarter basis which included $.6 million in one time gain items. For the second quarter of 2007, residential mortgage originations totaled $51.5 million, down 4.3% from the year ago period and up 21.0% from the linked-quarter. Related net mortgage revenue was $.8 million, unchanged from the year ago period and compared to $.7 million for the prior quarter.

Non-Interest Expense for the second quarter of 2007 increased 14.4% compared to the second quarter of 2006, primarily due to the effect of annual merit salary increases as well as increased staffing levels to support Cascade’s infrastructure and ongoing growth goals. The current quarter non interest expense was slightly below that of the immediately preceding quarter.

NAME CHANGE OF FARMERS & MERCHANTS:

Farmers & Merchants, a Bank of the Cascades Company, will be known as Bank of the Cascades starting in July 2007, one year after a successful merger of the two entities. In addition to retaining excellent employees and first-rate services, the merger has brought expanded products and services, increased lending capabilities and additional


outreach in the Idaho communities that Farmers & Merchants serves. For the past year we have been operating as one company and now we will be operating as one company under one name,” said Mike Mooney, president, Idaho Region for Bank of the Cascades. “Our employees remain committed to delivering the best in banking for our customers. Our exceptional service, customer accounts and branch locations all remain the same.”

BUSINESS STRATEGY:

Operating in some of the fastest growing markets in the nation, Cascade Bancorp (headquartered in Bend, Oregon) and its wholly-owned subsidiary, Bank of the Cascades, operates in Oregon and Idaho markets. In terms of banking growth markets, Cascade ranks as the top community bank footprint in the Northwest and among the top ten banks in the nation1. 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 and Boise/Treasure Valley. The Bank has been rated among the top performing banks in the nation for the ninth consecutive year by Independent Community Bankers of America, as well as being named the 2007 top community bank in the Northwest by US Banker Magazine. The Bank is honored to be among the top 40 “Best 100 Companies to Work For in Oregon, 2007,” 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. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which Cascade is conducting its operations. 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, are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). 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. This statement is included for the express purpose of protecting Cascade Bancorp and PSLRA’s safe harbor provisions.

The ability of Cascade to predict results or the actual effect of future plans and strategies is uncertain, and actual results may differ. You can obtain documents filed by Cascade free of charge at the website maintained by the SEC at www.sec.gov. In addition, you may obtain documents filed with the SEC by Cascade Bancorp free of charge by contacting: Investor Relations, Cascade Bancorp, 1100 NW Wall St., PO Box 369, Bend, OR 97701 (541) 385-6205.

#     #      #

 

 

1 Projected MSA population growth 2005-2010, weighted by bank deposits; Includes all public banks with assets $2B - $10B (ex-M&A targets); Source SNL Financial LC / ESRI



CASCADE BANCORP (CACB)
Selected Consolidated Financial Highlights
(In thousands, except per share data and ratios; unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year over Year

 

Linked Quarter

 

 

 

 

 

Balance Sheet Data (at period end)

 

2nd Qtr
2007

 

2nd Qtr
2006

 

%
Change

 

2nd Qtr
2007

 

1st Qtr
2007

 

%
Change

 

 

 

 

 

 

 

 

 

Investment securities

 

$

104,474

 

$

130,771

 

-20.1

%

$

104,474

 

$

110,544

 

-5.5

%

Loans, gross

 

 

1,959,031

 

 

1,767,955

 

10.8

%

$

1,959,031

 

 

1,931,899

 

1.4

%

Total assets

 

 

2,321,103

 

 

2,147,038

 

8.1

%

$

2,321,157

 

 

2,317,166

 

0.2

%

Total deposits

 

 

1,785,649

 

 

1,640,593

 

8.8

%

$

1,785,649

 

 

1,794,472

 

-0.5

%

Non-interest bearing deposits

 

 

479,649

 

 

633,261

 

-24.3

%

$

479,649

 

 

506,775

 

-5.4

%

Customer relationship deposits (1)

 

 

1,543,418

 

 

1,533,725

 

0.6

%

$

1,543,418

 

 

1,565,496

 

-1.4

%

Total shareholders’ equity

 

 

276,901

 

 

242,478

 

14.2

%

$

276,901

 

 

269,269

 

2.8

%

Income Statement Data (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

43,319

 

$

34,493

 

25.6

%

$

43,319

 

$

41,377

 

4.7

%

Interest expense

 

 

15,775

 

 

9,180

 

71.8

%

 

15,775

 

 

14,831

 

6.4

%

Net interest income

 

 

27,544

 

 

25,313

 

8.8

%

 

27,544

 

 

26,546

 

3.8

%

Loan loss provision

 

 

1,000

 

 

1,200

 

-16.7

%

 

1,000

 

 

1,050

 

-4.8

%

Net interest income after loan loss provision

 

 

26,544

 

 

24,113

 

10.1

%

 

26,544

 

 

25,496

 

4.1

%

Noninterest income

 

 

5,272

 

 

4,359

 

20.9

%

 

5,273

 

 

5,546

 

-4.9

%

Noninterest expense

 

 

15,549

 

 

13,594

 

14.4

%

 

15,549

 

 

15,800

 

-1.6

%

Income before income taxes

 

 

16,268

 

 

14,878

 

9.3

%

 

16,268

 

 

15,242

 

6.7

%

Provision for income taxes

 

 

6,087

 

 

5,872

 

3.7

%

 

6,087

 

 

5,721

 

6.4

%

Net income

 

$

10,181

 

$

9,006

 

13.0

%

$

10,181

 

$

9,521

 

6.9

%

Share Data (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.36

 

$

0.34

 

6.3

%

$

0.36

 

$

0.34

 

6.7

%

Diluted earnings per common share

 

$

0.36

 

$

0.33

 

7.6

%

$

0.36

 

$

0.33

 

7.2

%

Book value per common share

 

$

9.72

 

$

8.61

 

12.9

%

$

9.72

 

$

9.47

 

2.6

%

Tangible book value per common share

 

$

5.67

 

$

4.47

 

26.8

%

$

5.67

 

$

5.40

 

5.0

%

Cash dividends declared per common share

 

$

0.09

 

$

0.07

 

25.0

%

$

0.09

 

$

0.09

 

0.0

%

Ratio of dividends declared to net income

 

 

25.05

%

 

21.30

%

17.6

%

 

25.05

%

 

26.72

%

-6.3

%

Basic Average shares outstanding

 

 

28,335

 

 

26,645

 

6.3

%

 

28,335

 

 

28,269

 

0.2

%

Fully Diluted average shares outstanding

 

 

28,651

 

 

27,265

 

5.1

%

 

28,651

 

 

28,729

 

-0.3

%

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total shareholders’ equity (book)

 

 

14.07

%

 

17.14

%

-17.9

%

 

14.07

%

 

14.67

%

-4.1

%

Return on average total shareholders’ equity (tangible) (4)

 

 

24.50

%

 

32.01

%

-23.5

%

 

24.50

%

 

26.21

%

-6.5

%

Return on average total assets

 

 

1.76

%

 

1.84

%

-4.3

%

 

1.76

%

 

1.70

%

3.5

%

Net interest spread

 

 

4.30

%

 

4.90

%

-12.2

%

 

4.30

%

 

4.32

%

-0.5

%

Net interest margin

 

 

5.34

%

 

5.85

%

-8.7

%

 

5.34

%

 

5.34

%

0.0

%

Total revenue (net int inc + non int inc)

 

$

32,817

 

$

29,672

 

10.6

%

$

32,817

 

$

32,092

 

2.3

%

Efficiency ratio (5)

 

 

47.38

%

 

45.81

%

3.4

%

 

47.38

%

 

48.61

%

-2.5

%

Credit Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserve for credit losses

 

 

28,010

 

 

24,253

 

15.5

%

 

28,010

 

 

27,475

 

1.9

%

Reserve to ending total loans

 

 

1.43

%

 

1.37

%

4.4

%

 

1.43

%

 

1.42

%

0.7

%

Non-performing assets (6)

 

 

9,401

 

 

548

 

1615.5

%

 

9,401

 

 

7,651

 

22.9

%

Non-performing assets to total assets

 

 

0.41

%

 

0.03

%

1266.7

%

 

0.41

%

 

0.33

%

24.2

%

Delinquent >30 days to total loans

 

 

0.11

%

 

0.20

%

-45.0

%

 

0.11

%

 

0.05

%

120.0

%

Net Charge off’s

 

 

465

 

 

161

 

188.8

%

 

465

 

 

573

 

-18.8

%

Net loan charge-offs (annualized)

 

 

0.10

%

 

0.04

%

150.0

%

 

0.10

%

 

0.12

%

-16.7

%

Mortgage Activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Originations

 

$

51,469

 

$

53,793

 

-4.3

%

$

51,469

 

$

42,530

 

21.0

%

Total Servicing Portfolio (sold loans)

 

$

494,796

 

$

499,666

 

-1.0

%

$

494,796

 

$

492,137

 

0.5

%

Capitalized Mortgage Servicing Rights (MSR’s)

 

$

3,939

 

$

4,295

 

-8.3

%

$

3,939

 

$

3,991

 

-1.3

%

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity to average assets

 

 

11.68

%

 

10.74

%

8.8

%

 

11.68

%

 

11.56

%

1.0

%

Leverage ratio (7) (Est Q2-07)

 

 

10.30

%

 

10.38

%

-0.8

%

 

10.30

%

 

9.94

%

3.6

%

Total risk-based capital ratio (7) (Est Q2-07)

 

 

11.86

%

 

10.96

%

8.2

%

 

11.86

%

 

11.33

%

4.7

%

 

 

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)

Second quarter of 2006 includes results of the acquisition of F&M that closed April 20, 2006.

 

 

(3)

Adjusted to reflect a 25% (5:4) stock split declared in October 2006.

 

 

(4)

Excludes goodwill, core deposit intangible and other identifiable intangible assets, related to the acquisitions of Community Bank of Grants Pass F&M Holding Company.

 

 

(5)

Efficiency ratio is noninterest expense divided by (net interest income + noninterest income).

 

 

(6)

Nonperforming assets consist of loans contractually past due 90 days or more, nonaccrual loans and other real estate owned.

 

 

(7)

Computed in accordance with FRB and FDIC guidelines.

 

 

 

 

Total Shares Outstanding as of 6/30/07:

 

28,478,420

 


CASCADE BANCORP (CACB)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year over Year

 

Linked Quarter

 

 

 

2nd Qtr
2007

 

2nd Qtr
2006

 

%
Change

 

1st Qtr
2007

 

%
Change

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

   41,731

 

$

    32,839

 

 

27.1

%

$

   39,837

 

 

4.8

%

Taxable interest on investments

 

 

1,340

 

 

1,379

 

 

-2.8

%

 

1,316

 

 

1.8

%

Nontaxable interest on investments

 

 

76

 

 

78

 

 

-2.6

%

 

80

 

 

-5.0

%

Interest on federal funds sold

 

 

51

 

 

104

 

 

-51.0

%

 

56

 

 

-9.0

%

Interest on interest bearing balances from FHLB

 

 

111

 

 

93

 

 

19.4

%

 

81

 

 

37.1

%

Dividends on Federal Home Loan Bank stock

 

 

10

 

 

—

 

 

100.0

%

 

7

 

 

42.9

%

 

 

 

 

 

 

 

Total interest income

 

 

43,319

 

 

34,493

 

 

25.6

%

 

41,377

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand

 

 

7,338

 

 

4,490

 

 

63.4

%

 

6,875

 

 

6.7

%

Savings

 

 

51

 

 

56

 

 

-8.9

%

 

57

 

 

-10.5

%

Time

 

 

4,374

 

 

1,666

 

 

162.5

%

 

3,598

 

 

21.6

%

Junior subordinated debentures and other borrowings

 

 

4,012

 

 

2,968

 

 

35.2

%

 

4,301

 

 

-6.7

%

 

 

 

 

 

 

 

Total interest expense

 

 

15,775

 

 

9,180

 

 

71.8

%

 

14,831

 

 

6.4

%

 

 

 

 

 

 

 

 

Net interest income

 

 

27,544

 

 

25,313

 

 

8.8

%

 

26,546

 

 

3.8

%

Loan loss provision

 

 

1,000

 

 

1,200

 

 

-16.7

%

 

1,050

 

 

-4.8

%

 

 

 

 

 

 

 

Net interest income after loan loss provision

 

 

26,544

 

 

24,113

 

 

10.1

%

 

25,496

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

2,491

 

 

2,016

 

 

23.6

%

 

2,207

 

 

12.9

%

Mortgage loan origination and processing fees

 

 

504

 

 

457

 

 

10.3

%

 

435

 

 

15.9

%

Gains on sales of mortgage loans, net

 

 

257

 

 

319

 

 

-19.4

%

 

241

 

 

6.6

%

Card issuer and merchant services fees, net

 

 

1,063

 

 

796

 

 

33.5

%

 

887

 

 

19.8

%

Earnings on bank-owned life insurance

 

 

385

 

 

193

 

 

99.5

%

 

458

 

 

-15.9

%

Other income

 

 

572

 

 

578

 

 

-1.0

%

 

1,318

 

 

-56.6

%

 

 

 

 

 

 

 

Total noninterest income

 

 

5,272

 

 

4,359

 

 

20.9

%

 

5,546

 

 

-4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,122

 

 

8,492

 

 

7.4

%

 

9,214

 

 

-1.0

%

Occupancy

 

 

1,081

 

 

901

 

 

20.0

%

 

1,016

 

 

6.4

%

Equipment

 

 

571

 

 

528

 

 

8.1

%

 

560

 

 

2.0

%

Communications

 

 

472

 

 

373

 

 

26.5

%

 

548

 

 

-13.9

%

Advertising

 

 

313

 

 

326

 

 

-4.0

%

 

317

 

 

-1.3

%

Other expenses

 

 

3,989

 

 

2,973

 

 

34.2

%

 

4,145

 

 

-3.8

%

 

 

 

 

 

 

 

Total noninterest expense

 

 

15,548

 

 

13,593

 

 

14.4

%

 

15,800

 

 

-1.6

%

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

16,268

 

 

14,879

 

 

9.3

%

 

15,242

 

 

6.7

%

Provision for income taxes

 

 

6,087

 

 

5,873

 

 

3.6

%

 

5,721

 

 

6.4

%

 

 

 

 

 

 

 

Net income

 

$

10,181

 

$

9,006

 

 

13.0

%

$

9,521

 

 

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.36

 

$

0.34

 

 

6.3

%

$

0.34

 

 

6.7

%

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.36

 

$

0.33

 

 

7.6

%

$

0.33

 

 

7.2

%

 

 

 

 

 

 

 



CASCADE BANCORP (CACB)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year over Year

 

Linked Quarter

 

 

 

2nd Qtr
2007

 

2nd Qtr
2006

 

%
Change

 

1st Qtr
2007

 

%
Change

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

58,707

 

$

64,855

 

 

-9.5

%   

$

61,815

 

 

-5.0

%

Interest bearing balances due from FHLB

 

 

167

 

 

32

 

 

421.9

%

 

10,459

 

 

-98.4

%

Federal funds sold

 

 

469

 

 

383

 

 

22.5

%

 

7,800

 

 

-94.0

%

 

 

 

 

 

 

 

Total cash and cash equivalents

 

 

59,343

 

 

65,270

 

 

-9.1

%

 

80,074

 

 

-25.9

%

Investment securities available-for-sale

 

 

101,989

 

 

127,070

 

 

-19.7

%

 

106,852

 

 

-4.6

%

Investment securities held-to-maturity

 

 

2,485

 

 

3,701

 

 

-32.9

%

 

3,692

 

 

-32.7

%

Federal Home Loan Bank stock

 

 

6,991

 

 

6,785

 

 

3.0

%

 

6,991

 

 

0.0

%

Loans, net

 

 

1,934,434

 

 

1,743,703

 

 

10.9

%

 

1,907,837

 

 

1.4

%

Premises and equipment, net

 

 

36,935

 

 

40,000

 

 

-7.7

%

 

36,356

 

 

1.6

%

Goodwill

 

 

105,047

 

 

105,132

 

 

-0.1

%

 

105,056

 

 

0.0

%

Core deposit intangible

 

 

10,292

 

 

11,872

 

 

-13.3

%

 

10,687

 

 

-3.7

%

Bank-owned life insurance

 

 

32,573

 

 

17,869

 

 

82.3

%

 

32,188

 

 

1.2

%

Accrued interest and other assets

 

 

31,014

 

 

25,636

 

 

21.0

%

 

27,433

 

 

13.1

%

 

 

 

 

 

 

 

Total assets

 

$

2,321,103

 

$

2,147,038

 

 

8.1

%

$

2,317,166

 

 

0.2

%

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

$

479,649

 

$

633,261

 

 

-24.3

%

$

506,775

 

 

-5.4

%

Interest bearing demand

 

 

870,264

 

 

730,177

 

 

19.2

%

 

894,141

 

 

-2.7

%

Savings

 

 

40,624

 

 

52,558

 

 

-22.7

%

 

44,466

 

 

-8.6

%

Time deposits

 

 

395,112

 

 

224,596

 

 

75.9

%

 

349,090

 

 

13.2

%

 

 

 

 

 

 

 

Total deposits

 

 

1,785,649

 

 

1,640,592

 

 

8.8

%

 

1,794,472

 

 

-0.5

%

Junior subordinated debentures

 

 

68,558

 

 

68,558

 

 

0.0

%

 

68,558

 

 

0.0

%

Federal funds purchased

 

 

4,905

 

 

—

 

 

100.0

%

 

0

 

 

100.0

%

Other borrowings

 

 

139,705

 

 

117,405

 

 

19.0

%

 

118,222

 

 

18.2

%

Customer repurchase agreements

 

 

20,784

 

 

55,309

 

 

-62.4

%

 

38,227

 

 

-45.6

%

Accrued interest and other liabilities

 

 

24,601

 

 

22,696

 

 

8.4

%

 

28,418

 

 

-13.4

%

 

 

 

 

 

 

 

Total liabilities

 

 

2,044,202

 

 

1,904,560

 

 

7.3

%

 

2,047,897

 

 

-0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, no par value;

 

 

164,046

 

 

160,349

 

 

2.3

%

 

163,321

 

 

0.4

%

Retained earnings

 

 

112,695

 

 

81,946

 

 

37.5

%

 

105,075

 

 

7.3

%

Unrealized gains on investment securities available-for-sale, net of deferred income taxes

 

 

160

 

 

183

 

 

-12.6

%

 

873

 

 

-81.7

%

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

276,901

 

 

242,478

 

 

14.2

%

 

269,269

 

 

2.8

%

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

2,321,103

 

$

2,147,038

 

 

8.1

%

$

2,317,166

 

 

0.2

%

 

 

 

 

 

 

 



CASCADE BANCORP (CACB)
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands)
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Loan portfolio

 

June 30, 2007

 

% of
gross
loans

 

Dec 31, 2006

 

% of
gross
loans

 

 

Commercial

 

$

592,164

 

30

%

$

560,728

 

30

%

Real Estate:

 

 

 

 

 

 

 

 

 

 

 

Construction/lot

 

 

629,197

 

32

%

 

588,251

 

31

%

Mortgage

 

 

83,796

 

4

%

 

80,860

 

4

%

Commercial

 

 

603,804

 

31

%

 

606,340

 

32

%

Consumer

 

 

50,070

 

3

%

 

51,083

 

3

%

 

 

Total loans

 

 

1,959,031

 

100

%

 

1,887,262

 

100

%

 

 

 

 

 

 

 

 

 

 

Less reserve for loan losses

 

 

24,597

 

 

 

 

23,585

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

1,934,434

 

 

 

$

1,863,677

 

 

 

 

 

 

 

 

 

 

 
                   
    Three months ended
June 30,		      
   
     
   

2007

      

2006

      
   
     
     

Reserve for loan losses:

                      

Balance at beginning of period

  

$

24,062

      

$

12,345

      

Loan loss provision

  

 

1,000

      

 

1,200

      

Recoveries

  

 

426

      

 

117

      

Loans charged off

  

 

(891

 )    

 

(278

 )    

Reserves acquired from F&M

  

 

—

      

 

7,392

      

 

  
     
     

Balance at end of period

  

$

24,597

      

$

20,776

      
   
     
     
                       

Reserve for unfunded commitments:

 

 

 

                

Balance at beginning of period

 

$

3,413

      

$

2,513

      

Provision for unfunded commitments

 

 

—

      

$

964

      

 

 
     
     

Balance at end of period

 

$

3,413

      

$

3,477

      

 

 
     
     

 

 

 

 

      

 

 

      

Reserve for credit losses:

 

 

 

      

 

 

      

Reserve for loan losses

 

$

24,597

      

$

20,776

      

Reserve for unfunded commitments

 

 

3,413

      

 

3,477

      

 

 
     
     

Total reserve for credit losses

 

$

28,010

      

$

24,253

      

 

 
     
     
                       
    Three months ended
March 31,		      
   
     
   

2007

      

2006

      
   
     
     

Reserve for loan losses:

 

 

 

 

              

Balance at beginning of period

 

$

23,585

 

    

$

10,970

 

    

Loan loss provision

 

 

1,050

 

    

 

1,340

 

    

Recoveries

 

 

298

 

    

 

214

 

    

Loans charged off

 

 

(871

)

    

 

(179

)

    

Reserves acquired from F&M

 

 

—

 

    

 

—

 

    

 

 

 

    

 

    

Balance at end of period

 

$

24,062

 

    

$

12,345

 

    

 

 

 

    

 

    



CASCADE BANCORP (CACB)
ADDITIONAL FINANCIAL INFORMATION
(In thousands)
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year over Year

 

Linked Quarter

 

Three Months Ended:

 

2nd Qtr
2007

 

2nd Qtr
2006

 

%
Change

 

1st Qtr
2007

 

%
Change

 

 

 

Average Assets

 

$

2,323,973

 

$

1,961,971

 

18.5

%

$

2,277,448

 

2.0

%

Average Loans

 

 

1,949,480

 

 

1,592,855

 

22.4

%

 

1,897,656

 

2.7

%

Average Deposits

 

 

1,729,424

 

 

1,485,670

 

16.4

%

 

1,666,471

 

3.8

%

Average Non Interest Bearing Deposits

 

 

474,598

 

 

522,978

 

-9.3

%

 

478,677

 

-0.9

%

Average Customer Relationship Deposits

 

 

1,493,336

 

 

1,402,487

 

6.5

%

 

1,464,072

 

2.0

%

Average Earnings Assets

 

 

2,076,464

 

 

1,739,700

 

19.4

%

 

2,023,475

 

2.6

%

Average Interest Bearing Liabilities

 

 

1,548,405

 

 

1,205,791

 

28.4

%

 

1,504,662

 

2.9

%

Average Common Equity (book)

 

 

271,437

 

 

210,806

 

28.8

%

 

263,297

 

3.1

%

Average Common Equity (tangible)

 

 

155,859

 

 

119,404

 

30.5

%

 

147,328

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of:

 

June 30,
2007

 

June 30,
2006

 

%
Change

 

December 31,
2006

 

%
Change

 

 

 

Mortgage loans held for sale

 

$

3,300

 

$

5,461

 

-39.6

%

2,673

 

23.5

%

Intangibles & goodwill

 

 

115,339

 

 

116,606

 

-1.1

%

115,743

 

-0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due >90 days, not on non-accrual

 

 

—

 

 

—

 

0.0

%

—

 

0.0

%

Loans on non-accrual status

 

 

8,070

 

 

181

 

4358.6

%

7,651

 

5.5

%

 

 

 

 

 

 

 

 

 

Total non-performing Loans

 

 

8,070

 

 

181

 

4358.6

%

7,651

 

5.5

%

OREO

 

 

1,331

 

 

367

 

262.7

%

—

 

100.0

%

 

 

 

 

 

 

 

 

 

Total Non-performing assets

 

 

9,401

 

 

548

 

1615.5

%

7,651

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares Outstanding (actual)

 

 

28,478

 

 

28,158

 

1.1

%

28,446

 

0.1

%