Cascade Financial Corporation (Nasdaq:CASB), the parent company of
Cascade Bank, today reported financial results for the fourth
quarter ended December 31, 2010, which included improvements in
overall credit quality metrics and an increase in net interest
margin.
"Improving asset quality remains a top priority for Cascade and
we made steady progress on this goal in 2010. Nonperforming assets
peaked in the third quarter of 2009 and have declined in every
quarter since that time including a 20.2% quarterly reduction in
the fourth quarter of 2010," stated Carol K. Nelson, President and
CEO. "We've also committed significant efforts to improve our
funding mix, which included the restructuring transactions
announced in October. This, along with efforts to reduce our
cost of deposits, resulted in a net interest margin of 2.52% for
the fourth quarter, an improvement of 26 basis points on a
sequential quarter basis."
Cascade's net operating loss totaled $8.0 million for the fourth
quarter ended December 31, 2010, compared to a net operating loss
of $6.0 million in the preceding quarter. The provision for
loan losses for the quarter was $5.5 million, a 31.3% decrease on a
sequential quarter basis. Nearly offsetting the $2.5 million
reduction in the provision for the fourth quarter was an increase
in REO expenses, writedowns and losses of $2.3 million. In
addition, a fair value gain of $1.8 million was recorded and there
was $1.0 million in increased gains on sale of securities as
compared to the third quarter. These increases were more than
offset by the $4.8 million prepayment penalty related to the
balance sheet restructuring transactions previously
announced. Including accruals for preferred stock dividends
and accretion of issuance discount on preferred stock issued to the
U.S. Treasury, Cascade reported a fourth quarter net loss
attributable to common stockholders of $8.6 million, or $0.70 per
diluted common share, compared to a net loss of $6.6 million, or
$0.54 per diluted common share, in the preceding quarter and net
income of $521,000, or $0.04 per diluted common share, for the
fourth quarter a year ago. Dividend accruals on preferred
stock issued to the U.S. Treasury under the Capital Purchase
Program for the fourth quarter of 2010 totaled $515,000, and the
accretion of the issuance discount on preferred stock for the
quarter was $114,000.
On October 21st, Cascade announced that it had successfully
completed a series of balance sheet restructuring transactions
which improved Cascade's financial position. The transactions
included the restructuring of Cascade's securities portfolio,
prepayment and/or modification of Cascade's Federal Home Loan Bank
(FHLB) advances, and the purchase of interest rate caps designed to
protect both the net interest margin and stockholders' equity from
potential future rising interest rates.
Significant items for the fourth quarter of 2010 include:
- Provision for loan losses was $5.5 million; a 31.3% decrease on
a sequential quarter basis;
- Net charge-offs were $5.9 million; a 22.9% decrease on a
sequential quarter basis;
- Nonperforming assets to total assets declined to 5.51% from
6.36% on a sequential quarter basis;
- Total allowance for loan losses increased to 2.62% of total
loans, up from 2.51% three months earlier and 2.16% a year ago;
- As part of the balance sheet restructuring, $4.0 million in
gains on sale of securities partially offset FHLB prepayment
penalty expense of $4.8 million;
- Loan portfolio mix improved with a 37.3% reduction in real
estate construction loans compared to three months earlier, and a
68.2% reduction from a year ago. Land acquisition and
development/land loans are a component of this portfolio and are
down 21.0% from three months earlier, and down 63.0% from one year
ago;
- A reduction in average interest rates paid on interest checking
and CDs combined to reduce the cost of deposits by 6 basis points
compared to the preceding quarter;
- Net interest margin was 2.52%, a 26 basis point improvement on
a sequential quarter basis;
- Total risk-based capital ratio was 10.3%.
For the year, net losses were $70.3 million and losses
attributable to common stockholders were $72.8 million. Losses
per diluted common share were $5.95, compared to a loss of $25.8
million, or $2.13 per diluted common share in 2009. The loan
loss provision for all of 2010 was $56.5 million versus $44.2
million in 2009.
Asset Quality
"Asset quality metrics improved as a result of lower levels of
nonperforming loans, liquidation of real estate owned (REO) and
loan charge-offs," said Rob Disotell, EVP and Chief Credit
Officer. Nonperforming loans declined during the quarter to
$48.1 million, or 4.82% of total loans at December 31, 2010,
compared to $68.4 million or 6.47% of total loans three months
earlier. REO decreased to $34.4 million at December 31, 2010,
compared to $35.0 million three months earlier. Nonperforming
assets were $82.5 million or 5.51% of total assets at December 31,
2010, compared to $103.3 million or 6.36% at the end of the
preceding quarter, and $124.9 million or 7.33% a year
ago.
The following chart shows declining levels of nonperforming
assets for each of the quarters from December 31, 2009 through
December 31, 2010 ($ in 000's):
http://media.globenewswire.com/cache/8396/file/9476.pdf
The fourth quarter provision for loan losses was $5.5 million,
with net charge-offs of $5.9 million. The provision for loan
losses was $8.0 million for both the preceding quarter and the
fourth quarter a year ago. The total allowance for loan losses
now stands at $26.2 million, or 2.62% of total loans at quarter
end, compared to $26.5 million, or 2.51% of total loans at
September 30, 2010, and $26.0 million, or 2.16% of total loans a
year ago.
The following table shows nonperforming loans versus total loans
in each category:
|
Balance at |
Nonperforming |
NPL as a % |
LOAN PORTFOLIO ($ in
000's) |
12/31/2010 |
Loans (NPL) |
of Loans |
Business |
$ 400,047 |
$ 4,347 |
1.1% |
R/E construction |
|
|
|
Spec construction |
25,303 |
9,705 |
38.4% |
Land acquisition and
development/land |
54,142 |
2,848 |
5.3% |
Commercial R/E
construction |
2,333 |
-- |
0.0% |
Total R/E
construction |
81,778 |
12,553 |
15.4% |
Commercial R/E |
201,885 |
28,352 |
14.0% |
Multifamily |
89,350 |
-- |
0.0% |
Home equity/consumer |
29,964 |
1,048 |
3.5% |
Residential |
194,677 |
1,798 |
0.9% |
Total
loans |
$ 997,701 |
$ 48,098 |
4.8% |
Nonperforming loans totaled $48.1 million at December 31, 2010
and continued to be centered in real estate construction, which
were $12.6 million and commercial real estate, which were $28.4
million. The nonperforming real estate construction category
is comprised of 7 borrower relationships, the two largest of which
totaled $8.3 million and $3.3 million. The larger relationship
is comprised of a loan for 70 completed condominiums in Tacoma,
Washington, and the $3.3 million relationship includes loans for 19
finished lots and 6 completed spec homes in Lynnwood,
Washington. Three borrower relationships/loans comprise the
nonperforming commercial real estate loans, which include one
office building and one retail center in Lacey, Washington, and one
office building in Ballard, Washington. The office building in
Lacey, Washington was transferred to REO after year-end.
"During the fourth quarter of 2010, a total of $7.4 million in
loans were placed on nonaccrual status, $9.5 million were converted
to REO status, $12.2 million were paid off and $5.9 million were
charged-off in connection with updated real estate appraisals or
evaluations during the period," said Disotell. "The pace of
loans moving to nonaccrual status has slowed steadily over the past
three quarters."
The following table reflects loans placed on nonaccrual status
for each of the quarters in 2010:
NONPERFORMING LOANS ($ in
000's) |
4Q 2010 |
3Q 2010 |
2Q 2010 |
1Q 2010 |
Additions |
$7,379 |
$16,676 |
$24,727 |
$39,301 |
Additions of $7.4 million to nonperforming loans in the fourth
quarter were centered in:
- $4.2 million in business loans;
- $1.2 million in land acquisition and development/land loans;
- $687,000 in home equity/consumer loans;
- $877,000 in residential loans.
There were $12.2 million in paydowns on nonaccruing loans during
the quarter. These loans were centered in:
- $3.6 million in business loans;
- $3.9 million in spec construction loans;
- $2.4 million in land acquisition & development/land;
- $2.0 million in commercial R/E loans.
The following table shows the migration of nonperforming loans
through the portfolio in each category (12/31/10 compared to
9/30/10):
|
|
Additions |
Paydowns |
Charge-offs |
|
|
|
Balance at |
during |
during |
during |
Transfers |
Balance at |
NONPERFORMING LOANS ($ in
000's) |
12/31/10 |
quarter |
quarter |
quarter (1) |
to REO |
9/30/10 |
Business |
$ 4,347 |
$ 4,229 |
$ (3,591) |
$ (1,398) |
$ (1,494) |
$ 6,601 |
R/E construction |
|
|
|
|
|
|
Spec construction |
9,705 |
383 |
(3,948) |
(553) |
(2,292) |
16,115 |
Land acquisition and
development/land |
2,848 |
1,159 |
(2,402) |
(3,523) |
(5,709) |
13,323 |
Total R/E
construction |
12,553 |
1,542 |
(6,350) |
(4,076) |
(8,001) |
29,438 |
Commercial R/E |
28,352 |
71 |
(1,962) |
(33) |
-- |
30,276 |
Home equity/consumer |
1,048 |
687 |
(1) |
(87) |
-- |
449 |
Residential |
1,798 |
877 |
(341) |
(328) |
-- |
1,590 |
Total |
$ 48,098 |
$ 7,406 |
$ (12,245) |
$ (5,922) |
$ (9,495) |
$ 68,354 |
|
|
|
|
|
|
|
(1) Excludes $61 related to
overdrawn checking accounts and recoveries of $124. |
|
|
The following table shows the change in REO during the
quarter:
|
|
Additions |
|
|
|
|
|
Balance at |
during |
Capitalized |
Paydowns/ |
Writedowns/ |
Balance at |
REO ($ in 000's) |
12/31/10 |
quarter (1) |
Costs |
Sales |
Loss/Gain |
9/30/10 |
R/E construction |
|
|
|
|
|
|
Residential construction |
$ 239 |
$ 291 |
$ 157 |
$ (377) |
$ (47) |
$ 215 |
Land acquisition &
development/land |
23,706 |
5,623 |
262 |
(4,681) |
(4,481) |
26,983 |
Condominium construction |
-- |
(2,027) |
31 |
-- |
-- |
1,996 |
Total R/E
construction |
23,945 |
3,887 |
450 |
(5,058) |
(4,528) |
29,194 |
Commercial R/E |
4,974 |
255 |
14 |
(573) |
13 |
5,265 |
Multifamily |
1,718 |
2,027 |
-- |
(218) |
(91) |
-- |
Residential |
3,775 |
3,613 |
23 |
(260) |
(131) |
530 |
Total |
$ 34,412 |
$ 9,782 |
$ 487 |
$ (6,109) |
$ (4,737) |
$ 34,989 |
|
|
|
|
|
|
|
(1) Includes a $287 addition to
REO related to the payoff of a first lien, and $2.0 million
transferred from a |
|
completed condominium
construction project to multifamily. |
|
|
|
|
"We continue to convert nonperforming loans to REO as quickly as
possible," said Disotell. "By taking control of the projects
through the foreclosure process, we gain the ability to control the
property so we can quickly liquidate these assets." Net
writedowns and losses of $4.7 million for REO were largely
attributable to land acquisition and development/land, and resulted
primarily from updated evaluations and appraisals of existing REO
properties and secondarily to additional losses recorded upon sale
of properties.
Loans delinquent 31-89 days and still accruing totaled $2.9
million, or 0.29% of total loans at December 31, 2010, compared to
$2.4 million, or 0.22% of total loans at September 30, 2010, and
$2.6 million, or 0.22% of total loans at December 31,
2009. Cascade had no loans that were 90 days or more past due
and still accruing interest at December 31, 2010.
The following chart shows provision for loan loss expense and
net charge-offs on a quarter by quarter basis for 2010 ($ in
000's):
http://media.globenewswire.com/cache/8396/file/9477.pdf
Loan Portfolio
Total loans decreased from a year ago as Cascade continues to
aggressively reduce its real estate construction loan exposure.
At December 31, 2010, real estate construction loans were
8.2% of total loans, compared to 21.4% at December 31,
2009. Total loans decreased 17.0%, or $205.0 million, on a
year-over-year basis to $997.7 million at December 31, 2010.
The following table shows the changes in the loan portfolio in
each category (12/31/10 compared to 9/30/10 and 12/31/09):
|
|
|
|
One Year |
LOAN PORTFOLIO ($ in
000's) |
December 31,
2010 |
September 30,
2010 |
December 31,
2009 |
Change |
Business |
$ 400,047 |
$ 417,273 |
$ 469,196 |
-14.7% |
R/E construction |
|
|
|
|
Spec construction |
25,303 |
38,020 |
59,360 |
-57.4% |
Land acquisition and
development/land |
54,142 |
68,498 |
146,164 |
-63.0% |
Multifamily/custom
construction |
-- |
4,500 |
18,923 |
-100.0% |
Commercial R/E
construction |
2,333 |
19,509 |
32,470 |
-92.8% |
Total R/E
construction |
81,778 |
130,527 |
256,917 |
-68.2% |
Commercial R/E |
201,885 |
187,564 |
183,286 |
10.1% |
Multifamily |
89,350 |
93,246 |
82,418 |
8.4% |
Home equity/consumer |
29,964 |
30,329 |
31,738 |
-5.6% |
Residential |
194,677 |
197,400 |
179,133 |
8.7% |
Total
loans |
$ 997,701 |
$ 1,056,339 |
$ 1,202,688 |
-17.0% |
Business loans decreased 14.7% from the prior year to $400.0
million. Total real estate construction loans outstanding
decreased 68.2% to $81.8 million at December 31, 2010,
compared to $256.9 million a year ago. Within this category,
spec construction declined 57.4% to $25.3 million and land
acquisition & development/land decreased 63.0% to $54.1 million
at December 31, 2010 compared to one year ago. Commercial real
estate loans increased 10.1% from the prior year to $201.9
million. Multifamily loans increased 8.4% from the prior year
to $89.4 million. Home equity and consumer loans decreased
5.6% to $30.0 million, while residential loans grew 8.7% to $194.7
million, compared to a year ago.
Further details on changes during the fourth quarter are as
follows:
|
Balance at |
Additions/ |
Payments/ |
Reclassifi-- |
|
Transfers |
Balance at |
LOANS ($ in
000's) |
12/31/2010 |
Advances |
Payoffs |
cations (1) |
Charge-offs (2) |
to REO |
9/30/2010 |
Business |
$ 400,047 |
$ 47,733 |
$ (62,067) |
$ -- |
$ (1,398) |
$ (1,494) |
$ 417,273 |
R/E construction |
|
|
|
|
|
|
|
Spec construction |
25,303 |
2,601 |
(5,614) |
(6,859) |
(553) |
(2,292) |
38,020 |
Land acquisition and
development/land |
54,142 |
2,292 |
(7,416) |
-- |
(3,523) |
(5,709) |
68,498 |
Multifamily/custom
construction |
-- |
-- |
-- |
(4,500) |
-- |
-- |
4,500 |
Commercial R/E
construction |
2,333 |
-- |
-- |
(17,176) |
-- |
-- |
19,509 |
Total R/E
construction |
81,778 |
4,893 |
(13,030) |
(28,535) |
(4,076) |
(8,001) |
130,527 |
Commercial R/E |
201,885 |
72 |
(2,894) |
17,176 |
(33) |
-- |
187,564 |
Multifamily |
89,350 |
64 |
(14,578) |
10,618 |
-- |
-- |
93,246 |
Home equity/consumer |
29,964 |
1,160 |
(1,438) |
-- |
(87) |
-- |
30,329 |
Residential |
194,677 |
2,279 |
(5,415) |
741 |
(328) |
-- |
197,400 |
Total
loans |
997,701 |
56,201 |
(99,422) |
-- |
(5,922) |
(9,495) |
1,056,339 |
Deferred loan fees |
(3,934) |
196 |
-- |
-- |
-- |
-- |
(4,130) |
Allowance for loan losses |
(26,106) |
(5,500) |
-- |
(9) |
5,859 |
-- |
(26,456) |
Loans,
net |
$ 967,661 |
$ 50,897 |
$ (99,422) |
$ (9) |
$ (63) |
$ (9,495) |
$ 1,025,753 |
|
|
|
|
|
|
|
|
(1) Includes $9 related to the
change in off-balance sheet allowance for loan losses. |
|
|
|
(2) Excludes $61 related to
overdrawn checking accounts and recoveries of $124. |
|
|
|
|
Investment Portfolio and Liquidity
The investment portfolio increased $24.5 million year-over-year,
and increased $18.5 million from the preceding quarter, to $300.4
million. Most of the quarterly increase was due to the
increase in securities held-to-maturity. Interest-earning
deposits, including deposits at the Federal Reserve Bank, were
$127.5 million at December 31, 2010, down considerably from $219.3
million the preceding quarter and $141.6 million a year earlier as
Cascade reduced its excess liquidity.
"During the fourth quarter we successfully concluded a series of
balance sheet restructuring transactions which we started in the
third quarter, as part of our overall business plan to strengthen
our financial condition going forward," said Debra L. Johnson,
Chief Financial Officer. "In early October, we used
low-yielding interest-earning deposits at the Federal Reserve Bank
to prepay $80.0 million in FHLB advances, which carried a cost of
3.75%. In addition, we restructured $159.0 million of
long-maturity FHLB 'option' advances, callable quarterly as rates
rise, into floating rate, option free borrowings, reducing the
current average rate on the advances by 1.38%. Along with the
restructured advances, we purchased interest rate caps totaling
$159.0 million in notional amount which are designed to protect
both net interest income and stockholders' equity from potential
future rising interest rates. As part of this strategy, we
sold available-for-sale securities totaling $248.6 million for a
gain of $5.1 million which offset the prepayment penalties of $4.8
million from the FHLB advances. We recorded approximately $1.1
million of the securities gains during the third quarter of 2010
and approximately $4.0 million of the securities gains during the
fourth quarter of 2010. We reinvested substantially all of the
proceeds from the securities sale into new securities with an
average yield of 2.4%. These transactions helped us to improve
our net interest margin and capital position."
Retail Deposit Growth
"We have repositioned our deposit portfolio and our deposit
strategy is focused on the growth of retail deposits while reducing
reliance on brokered and other non-core deposits," said
Nelson. "Retail deposits grew $12.0 million for the quarter
and $140.9 million for the year, offset by planned runoff in
public, brokered and other non-core deposits. Retail deposits
totaled $914.5 million at December 31, 2010 compared to $902.5
million at September 30, 2010 and $773.6 million at December 31,
2009."
The following chart shows the growth trend in retail deposits
for each of the quarters from December 31, 2009 through December
31, 2010 ($ in 000's):
http://media.globenewswire.com/cache/8396/file/9478.pdf
Total Deposits
Total deposits were $1.11 billion at December 31, 2010 compared
to $1.14 billion a year ago. Included in total deposits at
year-end were $914.5 million in retail deposits, $35.5 million in
public deposits, $105.4 million in brokered deposits and $52.2
million in other non-core deposits. Personal checking balances
were down $20.7 million for the quarter and $57.0 million for the
year. The decline was due to successful cross sell efforts, by
moving Main Street checking balances into lower interest rate
savings and MMDA accounts. Business checking balances were
down $50.4 million on a year-over-year basis due to a planned
reduction in public funds checking accounts that require 100%
collateralization. Savings and money market balances increased
$43.8 million, or 32.9% on a year-over-year basis and CDs increased
$31.3 million, or 5.6% on a year-over-year basis.
The following table shows deposits in each category (12/31/10
compared to 9/30/10 and 12/31/09):
|
|
|
|
One Year |
DEPOSITS ($ in
000's) |
December 31,
2010 |
September 30,
2010 |
December 31,
2009 |
Change |
Personal checking accounts |
$ 237,263 |
$ 257,928 |
$ 294,238 |
-19.4% |
Business checking accounts |
100,303 |
109,198 |
150,684 |
-33.4% |
Total checking accounts |
337,566 |
367,126 |
444,922 |
-24.1% |
Savings and MMDA |
176,945 |
144,298 |
133,130 |
32.9% |
CDs |
593,043 |
623,843 |
561,722 |
5.6% |
Total deposits |
$ 1,107,554 |
$ 1,135,267 |
$ 1,139,774 |
-2.8% |
Capital
Total stockholders' equity was $58.5 million as of December 31,
2010, compared to $75.8 million at September 30,
2010. Accumulated other comprehensive loss was $5.1 million at
December 31, 2010, compared to accumulated other comprehensive
income of $3.8 million at September 30, 2010. Accumulated
other comprehensive gain at September 30, 2010 related to the
unrealized gain on available-for-sale securities, which were sold
and replaced in the fourth quarter of 2010 as part of the balance
sheet restructure transactions. At December 31, 2010,
accumulated other comprehensive loss of $5.1 million was related to
an unrealized loss on available-for-sale securities that was
partially offset by an unrealized gain on interest rate caps, due
to the increase in interest rates in the fourth
quarter.
Book value was $1.71 per common share at year-end, and tangible
book value was $1.69 per common share. Cascade had a total
risk-based capital ratio of 10.26% and a Tier 1 capital ratio of
5.54% as of December 31, 2010.
Operating Results
Net interest income for the fourth quarter was down 16.0% to
$8.8 million compared to $10.4 million for the fourth quarter of
2009, due primarily to a decline in the loan portfolio and
increased on-balance sheet liquidity.
Total other income was $7.8 million for the quarter, compared to
$7.6 million for the fourth quarter a year ago. The gain on
the sale of securities was $4.0 million during the fourth quarter,
compared to $649,000 in the fourth quarter a year ago. Fair
value gains for the quarter were $1.8 million compared to $5.0
million for the fourth quarter a year ago.
Total other expenses were $18.4 million in the fourth quarter of
2010, compared to $8.6 million in the fourth quarter of 2009.
The increase was primarily due to $4.8 million in FHLB prepayment
penalties associated with the balance sheet restructuring
transactions, a $3.8 million increase in REO expenses, write-downs
and losses, as well as a $539,000 increase in FDIC insurance
premiums and a $323,000 increase in business insurance compared to
the fourth quarter a year ago. Compensation expense decreased
slightly during the fourth quarter compared to the fourth quarter a
year ago.
For the year, net interest income was $36.4 million, compared to
$43.3 million in 2009. Other income was $18.7 million for the
year compared to $16.6 million in 2009. For the year, total
other expenses (excluding the second quarter 2010 goodwill
impairment charge) increased to $52.2 million compared to $35.1
million (excluding the second quarter 2009 goodwill impairment
charge) in 2009. The increase was largely due to a $9.2 million
increase in REO expenses, write-downs and losses, $4.8 million in
FHLB prepayment penalties associated with the balance sheet
restructuring transactions, a $1.4 million increase in FDIC
insurance premiums, a $1.3 million increase in business insurance
premiums, and a $630,000 increase in legal expenses. For the
year, total compensation and employee benefits were up $359,000, or
2.6%. Within this category, employee salary expense was down
$340,000, or 2.8%, and director's compensation expense was down
$77,000, or 15.1%. The reduction in employee salary expense
was related to an 8.9% reduction in the number of total employees
during the year. These reductions were more than offset by a
decline in deferred compensation costs, which reduces total
compensation expense, due to lower loan originations in 2010 as
compared to 2009. The second quarter 2010 and 2009 goodwill
impairment charges were $12.9 million and $11.7 million,
respectively.
Net Interest Margin
Cascade's net interest margin was 2.52% for the fourth quarter
of 2010, compared to 2.26% in the immediate prior quarter and 2.79%
for the fourth quarter a year ago. The yield on earning assets
increased by 5 basis points compared to the preceding quarter,
while the cost of interest-bearing liabilities declined by 21 basis
points. The increase in the yield on earning assets compared
to the prior quarter was due to lower cash balances.
"The balance sheet restructuring described above has already had
a positive impact on our net interest margin by utilizing
low-yielding cash balances at the Federal Reserve Bank to prepay
higher cost FHLB advances and restructuring the remaining advances
to further reduce funding costs," said Johnson.
The following table depicts Cascade's yield on earning assets,
its cost of funds on paying liabilities and the resulting spread
and margin:
|
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
3Q09 |
2Q09 |
1Q09 |
4Q08 |
Asset yield |
4.67% |
4.62% |
4.89% |
5.13% |
5.35% |
5.60% |
5.63% |
5.83% |
6.07% |
Liability cost |
2.23% |
2.44% |
2.46% |
2.60% |
2.65% |
2.63% |
2.74% |
3.02% |
3.33% |
|
|
|
|
|
|
|
|
|
|
Spread |
2.44% |
2.18% |
2.43% |
2.53% |
2.70% |
2.97% |
2.89% |
2.81% |
2.74% |
Margin |
2.52% |
2.26% |
2.49% |
2.60% |
2.79% |
3.03% |
3.01% |
3.03% |
3.01% |
Regulatory Matters
Cascade is working diligently to comply with all regulatory
orders, has engaged investment banking advisors and is actively
exploring a variety of means to raise additional capital and
improve its financial position. Cascade's ability to raise
additional capital will depend on conditions in the capital
markets, which are outside its control, and on Cascade's financial
performance.
Conference Call
Cascade's management team will host an analyst call on
Wednesday, January 26, 2011, at 11:00 a.m. PST (2:00 p.m. EST) to
discuss fourth quarter results. Interested investors may
listen to the call live or via replay at www.cascadebank.com under
shareholder information. Investment professionals are invited
to dial (480) 629-9722 to participate in the live call. A
replay will be available for one week at (303) 590-3030, using
access code 4395593.
About Cascade Financial
Established in 1916, Cascade Bank, the only operating subsidiary
of Cascade Financial Corporation, is a state chartered commercial
bank headquartered in Everett, Washington. Cascade Bank
maintains an "Outstanding" CRA rating and has proudly served the
Puget Sound region for over 90 years. Cascade Bank operates 22
full service branches in Everett, Lynnwood, Marysville, Mukilteo,
Shoreline, Smokey Point, Issaquah, Clearview, Woodinville, Lake
Stevens, Bellevue, Snohomish, North Bend, Burlington and
Edmonds.
In November 2010, Cascade Bank was named Favorite Snohomish
County Company (with fewer than 250 employees) in NW.Jobs.com's
People's Picks campaign for the second year in a row. In April
2010, Cascade was ranked #8 on the Puget Sound Business Journal's
list of largest bank companies headquartered in the Puget Sound
area.
Non-GAAP Financial Measures
This news release contains certain non-GAAP financial measures
in addition to results presented in accordance with Generally
Accepted Accounting Principles (GAAP). These measures include
tangible book value per share, efficiency ratio and tangible
capital/assets ratio. These measures should not be construed
as a substitute for GAAP measures; they should be read and used in
conjunction with Cascade's GAAP financial information. A
reconciliation of the included non-GAAP financial measures to GAAP
measures is included elsewhere in this release.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 ("PSLRA"). This statement is included for the express
purpose of availing Cascade of the protections of the safe harbor
provisions of the PSLRA. Readers should not place undue
reliance on forward-looking statements, which reflect management's
views only as of the date hereof. The words "should,"
"anticipate," "expect," "will," "believe," and words of similar
meaning are intended, in part, to help identify forward-looking
statements. Additional forward-looking statements include
statements about the benefits of the balance sheet restructurings
to improve Cascade's financial condition, reduce its risk profile
and improve its shareholder value proposition, as well as
statements about the prepayment and restructure of the FHLB
advances anticipated to have a positive impact on Cascade's net
interest margin. Future events are difficult to predict, and the
expectations described above are subject to risks and uncertainties
that may cause actual results to differ materially. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or expected. In
addition to discussions about risks and uncertainties set forth
from time to time in Cascade's filings with the Securities and
Exchange Commission, factors that may cause actual results to
differ materially from those contemplated in these forward-looking
statements include, among others: (1) Cascade's ability to
raise additional capital to satisfy the consent order on acceptable
terms, if at all;(2) the effect of the consent order on Cascade's
operations and potential future supervisory action against Cascade;
(3) failure to maintain adequate levels of capital and liquidity to
support Cascade's operations; (4) the extent and duration of
continued economic and market disruptions and governmental actions
to address these disruptions; (5) the risk of new and changing
legislation, regulation and/or regulatory actions; (6) local and
national general and economic conditions; (7) changes in interest
rates; (8) reductions in loan demand or deposit levels or failure
to attract loans and deposits; (9) changes in loan collectability,
defaults and charge-off rates; and (10) adequacy of Cascade's
allowance for loan losses, credit quality and the effect of credit
quality on its provision for credit losses and allowance for loan
losses.
Cascade undertakes no obligation to publicly revise or update
these forward-looking statements to reflect events or circumstances
that arise after the date of this release. Readers should carefully
review the risk factors described in this and other documents
Cascade files from time to time with the Securities and Exchange
Commission, including Cascade's 2009 Form 10-K and Cascade's Form
10-Q for the quarter ending September 30, 2010.
BALANCE SHEET |
|
|
Quarter |
|
Year |
(Dollars in thousands except per share
amounts) |
Dec. 31, 2010 |
Sept. 30, 2010 |
Change |
Dec. 31, 2009 |
Change |
(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
Cash on hand and in banks |
$ 3,871 |
$ 4,310 |
-10.2% |
$ 4,008 |
-3.4% |
Interest-earning deposits |
127,464 |
219,291 |
-41.9% |
141,587 |
-10.0% |
|
|
|
|
|
|
Securities available-for-sale, fair
value |
234,606 |
249,383 |
-5.9% |
227,805 |
3.0% |
Securities held-to-maturity, amortized
cost |
53,912 |
20,681 |
160.7% |
36,177 |
49.0% |
Federal Home Loan Bank (FHLB) stock |
11,920 |
11,920 |
0.0% |
11,920 |
0.0% |
Total securities |
300,438 |
281,984 |
6.5% |
275,902 |
8.9% |
Loans |
|
|
|
|
|
Business |
400,047 |
417,273 |
-4.1% |
469,196 |
-14.7% |
R/E construction |
81,778 |
130,527 |
-37.3% |
256,917 |
-68.2% |
Commercial R/E |
201,885 |
187,564 |
7.6% |
183,286 |
10.1% |
Multifamily |
89,350 |
93,246 |
-4.2% |
82,418 |
8.4% |
Home equity/consumer |
29,964 |
30,329 |
-1.2% |
31,738 |
-5.6% |
Residential |
194,677 |
197,400 |
-1.4% |
179,133 |
8.7% |
Total loans |
997,701 |
1,056,339 |
-5.6% |
1,202,688 |
-17.0% |
Deferred loan fees |
(3,934) |
(4,130) |
4.7% |
(3,575) |
-10.0% |
Allowance for loan losses |
(26,106) |
(26,456) |
1.3% |
(25,900) |
-0.8% |
Loans, net |
967,661 |
1,025,753 |
-5.7% |
1,173,213 |
-17.5% |
Real estate owned (REO) |
34,412 |
34,989 |
-1.6% |
18,842 |
82.6% |
Premises and equipment, net |
13,325 |
13,575 |
-1.8% |
14,526 |
-8.3% |
Bank owned life insurance |
25,489 |
25,264 |
0.9% |
24,522 |
3.9% |
Goodwill |
-- |
-- |
N/A |
12,885 |
-100.0% |
Prepaid FDIC insurance premiums |
2,968 |
3,975 |
-25.3% |
6,859 |
-56.7% |
Federal income tax receivable |
-- |
-- |
N/A |
12,979 |
-100.0% |
Deferred tax asset |
-- |
-- |
N/A |
4,991 |
-100.0% |
Other assets |
22,706 |
15,394 |
47.5% |
14,314 |
58.6% |
Total
assets |
$ 1,498,334 |
$ 1,624,535 |
-7.8% |
$ 1,704,628 |
-12.1% |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Deposits |
|
|
|
|
|
Personal checking accounts |
$ 237,263 |
$ 257,928 |
-8.0% |
$ 294,238 |
-19.4% |
Business checking accounts |
100,303 |
109,198 |
-8.1% |
150,684 |
-33.4% |
Total checking accounts |
337,566 |
367,126 |
-8.1% |
444,922 |
-24.1% |
Savings and money market
accounts |
176,945 |
144,298 |
22.6% |
133,130 |
32.9% |
Certificates of deposit |
593,043 |
623,843 |
-4.9% |
561,722 |
5.6% |
Total deposits |
1,107,554 |
1,135,267 |
-2.4% |
1,139,774 |
-2.8% |
FHLB advances |
159,000 |
239,000 |
-33.5% |
239,000 |
-33.5% |
Securities sold under agreement to
repurchase |
145,000 |
145,000 |
0.0% |
145,410 |
-0.3% |
Federal Reserve borrowings |
-- |
-- |
N/A |
20,000 |
-100.0% |
Junior subordinated debentures |
15,465 |
15,465 |
0.0% |
15,465 |
0.0% |
Junior subordinated debentures, fair
value |
1,500 |
3,341 |
-55.1% |
3,341 |
-55.1% |
Other liabilities |
11,363 |
10,623 |
7.0% |
7,188 |
58.1% |
Total
liabilities |
1,439,882 |
1,548,696 |
-7.0% |
1,570,178 |
-8.3% |
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
Preferred stock |
37,488 |
37,374 |
0.3% |
37,038 |
1.2% |
Common stock and paid in capital |
44,055 |
44,041 |
0.0% |
43,770 |
0.7% |
(Accumulated deficit) retained earnings |
(17,965) |
(9,332) |
-92.5% |
54,797 |
-132.8% |
Accumulated other comprehensive (loss)
gain |
(5,126) |
3,756 |
-236.5% |
(1,155) |
-343.8% |
Total stockholders'
equity |
58,452 |
75,839 |
-22.9% |
134,450 |
-56.5% |
Total liabilities and stockholders'
equity |
$ 1,498,334 |
$ 1,624,535 |
-7.8% |
$ 1,704,628 |
-12.1% |
|
|
|
|
|
|
STATEMENT OF OPERATIONS |
Quarter Ended |
Quarter Ended |
Quarter |
Quarter Ended |
Year |
(Dollars in thousands except per share
amounts) |
Dec. 31, 2010 |
Sept. 30, 2010 |
Change |
Dec. 31, 2009 |
Change |
(Unaudited) |
|
|
|
|
|
Interest income |
$ 16,242 |
$ 17,394 |
-6.6% |
$ 20,014 |
-18.8% |
Interest expense |
7,482 |
8,867 |
-15.6% |
9,586 |
-21.9% |
Net interest income |
8,760 |
8,527 |
2.7% |
10,428 |
-16.0% |
Provision for loan losses |
5,500 |
8,000 |
-31.3% |
8,000 |
-31.3% |
Net interest income after provision
for loan losses |
3,260 |
527 |
N/A |
2,428 |
34.3% |
Other income |
|
|
|
|
|
Checking fees |
1,309 |
1,416 |
-7.6% |
1,323 |
-1.1% |
Service fees |
241 |
244 |
-1.2% |
261 |
-7.7% |
Bank owned life insurance,
net |
225 |
252 |
-10.7% |
248 |
-9.3% |
Gain on sales/calls of
securities |
3,998 |
3,000 |
33.3% |
649 |
N/A |
Gain on sale of loans |
19 |
167 |
-88.6% |
15 |
26.7% |
Fair value gains |
1,841 |
-- |
N/A |
5,017 |
-63.3% |
Other |
162 |
120 |
35.0% |
115 |
40.9% |
Total other income |
7,795 |
5,199 |
49.9% |
7,628 |
2.2% |
|
|
|
|
|
|
Total income |
11,055 |
5,726 |
93.1% |
10,056 |
9.9% |
Other expenses |
|
|
|
|
|
Compensation & employee
benefits |
3,389 |
3,884 |
-12.7% |
3,419 |
-0.9% |
Occupancy & equipment |
929 |
970 |
-4.2% |
1,068 |
-13.0% |
FDIC insurance |
1,051 |
1,080 |
-2.7% |
512 |
105.3% |
Business insurance |
386 |
376 |
2.7% |
63 |
N/A |
Legal |
384 |
320 |
20.0% |
403 |
-4.7% |
B&O taxes |
351 |
357 |
-1.7% |
288 |
21.9% |
REO expenses, writedowns &
losses |
4,956 |
2,666 |
85.9% |
1,142 |
334.0% |
FHLB prepayment penalty |
4,808 |
-- |
N/A |
-- |
N/A |
Other operating expenses |
1,978 |
2,045 |
-3.3% |
1,708 |
15.8% |
OTTI charge |
172 |
-- |
N/A |
-- |
N/A |
Goodwill impairment |
-- |
-- |
N/A |
-- |
N/A |
Total other expenses |
18,404 |
11,698 |
57.3% |
8,603 |
113.9% |
|
|
|
|
|
|
Net (loss) income before provision
for federal income tax |
(7,349) |
(5,972) |
-23.1% |
1,453 |
N/A |
|
|
|
|
|
|
Provision for federal income tax |
654 |
-- |
N/A |
338 |
93.5% |
|
|
|
|
|
|
Net (loss) income |
(8,003) |
(5,972) |
-34.0% |
1,115 |
N/A |
|
|
|
|
|
|
Dividends on preferred stock |
515 |
508 |
1.4% |
487 |
5.7% |
Accretion of issuance discount on preferred
stock |
114 |
112 |
1.8% |
107 |
6.5% |
|
|
|
|
|
|
(Loss) income attributable to common
stockholders |
$ (8,632) |
$ (6,592) |
-30.9% |
$ 521 |
N/A |
|
|
|
|
|
|
NET (LOSS) INCOME PER
COMMON SHARE INFORMATION |
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share,
basic |
$ (0.70) |
$ (0.54) |
-29.6% |
$ 0.04 |
N/A |
Net (loss) income per common share,
diluted |
$ (0.70) |
$ (0.54) |
-29.6% |
$ 0.04 |
N/A |
|
|
|
|
|
|
Weighted average number of common shares
outstanding |
|
|
|
|
|
Basic |
12,271,529 |
12,271,529 |
|
12,146,080 |
|
Diluted |
12,271,529 |
12,271,529 |
|
12,146,080 |
|
|
|
|
STATEMENT OF OPERATIONS |
Year
Ended |
Year |
(Dollars in thousands except per share
amounts) |
Dec. 31, 2010 |
Dec. 31, 2009 |
Change |
(Unaudited) |
|
|
|
Interest income |
$ 71,395 |
$ 81,828 |
-12.7% |
Interest expense |
34,956 |
38,540 |
-9.3% |
Net interest income |
36,439 |
43,288 |
-15.8% |
Provision for loan losses |
56,515 |
44,175 |
27.9% |
Net interest loss after provision for
loan losses |
(20,076) |
(887) |
N/A |
Other income |
|
|
|
Checking fees |
5,402 |
5,047 |
7.0% |
Service fees |
965 |
1,033 |
-6.6% |
Bank owned life insurance,
net |
967 |
885 |
9.3% |
Gain on sales/calls of
securities |
8,790 |
1,845 |
376.4% |
Gain on sale of loans |
224 |
176 |
27.3% |
Fair value gains |
1,841 |
7,169 |
-74.3% |
Other |
555 |
474 |
17.1% |
Total other income |
18,744 |
16,629 |
12.7% |
|
|
|
|
Total (loss) income |
(1,332) |
15,742 |
-108.5% |
Other expenses |
|
|
|
Compensation & employee
benefits |
14,341 |
13,981 |
2.6% |
Occupancy & equipment |
3,930 |
4,229 |
-7.1% |
FDIC insurance |
4,091 |
2,649 |
54.4% |
Business insurance |
1,514 |
253 |
498.4% |
Legal |
1,451 |
821 |
76.7% |
B&O taxes |
1,237 |
1,162 |
6.5% |
REO expenses, writedowns &
losses |
12,544 |
3,318 |
278.1% |
FHLB prepayment penalty |
4,808 |
-- |
N/A |
Other operating expenses |
8,116 |
7,849 |
3.4% |
OTTI charge |
172 |
858 |
-80.0% |
Goodwill impairment |
12,885 |
11,700 |
10.1% |
Total other expenses |
65,089 |
46,820 |
39.0% |
|
|
|
|
Net loss before provision (benefit)
for income tax |
(66,421) |
(31,078) |
-113.7% |
|
|
|
|
Provision (benefit) for income tax |
3,865 |
(7,610) |
-150.8% |
|
|
|
|
Net loss |
(70,286) |
(23,468) |
-199.5% |
|
|
|
|
Dividends on preferred stock |
2,026 |
1,943 |
4.3% |
Accretion of issuance discount on preferred
stock |
450 |
422 |
6.6% |
|
|
|
|
Loss attributable to common
stockholders |
$ (72,762) |
$ (25,833) |
-181.7% |
|
|
|
|
NET LOSS PER COMMON SHARE
INFORMATION |
|
|
|
|
|
|
|
Net loss per common share, basic |
$ (5.95) |
$ (2.13) |
-179.0% |
Net loss per common share, diluted |
$ (5.95) |
$ (2.13) |
-179.0% |
|
|
|
|
Weighted average number of common shares
outstanding |
|
|
|
Basic |
12,238,802 |
12,121,113 |
|
Diluted |
12,238,802 |
12,121,113 |
|
|
|
|
|
|
|
(Dollars in thousands except per share
amounts) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
Quarter Ended |
|
Year
Ended |
PERFORMANCE MEASURES AND
RATIOS |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2009 |
Return on average common stockholders'
equity |
-110.26% |
-55.12% |
2.07% |
-127.98% |
-24.21% |
Return on average tangible common
stockholders' equity* |
-111.07% |
-55.43% |
2.38% |
-112.13% |
-15.61% |
Return on average assets |
-2.25% |
-1.59% |
0.12% |
-4.42% |
-1.57% |
Efficiency ratio |
111.17% |
85.23% |
47.65% |
117.95% |
78.14% |
Efficiency ratio (excluding goodwill
impairment and OTTI)* |
110.13% |
85.23% |
47.65% |
94.29% |
57.18% |
Net interest margin |
2.52% |
2.26% |
2.79% |
2.47% |
2.96% |
*Non-GAAP measurement |
|
|
|
|
|
|
|
Quarter Ended |
|
Year
Ended |
AVERAGE BALANCES |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2009 |
Average assets |
$ 1,524,157 |
$ 1,647,081 |
$ 1,679,477 |
$ 1,645,980 |
$ 1,640,201 |
Average earning assets |
1,380,489 |
1,494,329 |
1,483,361 |
1,478,085 |
1,461,198 |
Average total loans |
1,036,558 |
1,090,449 |
1,232,078 |
1,113,891 |
1,242,588 |
Average deposits |
1,116,588 |
1,150,803 |
1,083,453 |
1,158,437 |
1,017,348 |
Average stockholders' equity (including
preferred stock) |
68,477 |
84,748 |
137,024 |
94,099 |
143,534 |
Average common stockholders' equity
(excluding preferred stock) |
31,060 |
47,447 |
100,056 |
56,852 |
106,716 |
Average tangible common stockholders' equity
(excluding |
30,834 |
47,184 |
86,803 |
53,399 |
90,523 |
preferred stock and goodwill and
intangibles) |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
ANALYSIS |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
|
|
Total stockholders' equity |
$ 58,452 |
$ 75,839 |
$ 134,450 |
|
|
Less: preferred stock |
37,488 |
37,374 |
37,038 |
|
|
Total common stockholders' equity |
20,964 |
38,465 |
97,412 |
|
|
Less: goodwill and intangibles |
211 |
247 |
13,237 |
|
|
Tangible common stockholders' equity |
$ 20,753 |
$ 38,218 |
$ 84,175 |
|
|
|
|
|
|
|
|
Common stock outstanding |
12,271,529 |
12,271,529 |
12,146,080 |
|
|
Book value per common share |
$ 1.71 |
$ 3.13 |
$ 8.02 |
|
|
Tangible book value per common share |
$ 1.69 |
$ 3.11 |
$ 6.93 |
|
|
|
|
|
|
(Dollars in thousands except per share
amounts) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
ASSET QUALITY |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
Nonperforming loans (NPLs) |
$ 48,098 |
$ 68,354 |
$ 106,096 |
Nonperforming loans/total loans |
4.82% |
6.47% |
8.82% |
REO |
$ 34,412 |
$ 34,989 |
$ 18,842 |
Nonperforming assets |
$ 82,510 |
$ 103,343 |
$ 124,938 |
Nonperforming assets/total assets |
5.51% |
6.36% |
7.33% |
Net loan charge-offs in the quarter |
$ 5,859 |
$ 7,603 |
$ 6,855 |
Net charge-offs in the quarter/total
loans |
0.59% |
0.72% |
0.57% |
|
|
|
|
Allowance for loan losses |
$ 26,106 |
$ 26,456 |
$ 25,900 |
Plus: Allowance for off-balance sheet
commitments |
50 |
59 |
69 |
Total allowance for loan losses |
$ 26,156 |
$ 26,515 |
$ 25,969 |
Total allowance for loan losses/total
loans |
2.62% |
2.51% |
2.16% |
Total allowance for loan losses/nonperforming
loans |
54.38% |
38.79% |
24.48% |
|
|
|
|
Capital/asset ratio (including junior
subordinated debentures) |
5.32% |
6.15% |
9.35% |
Capital/asset ratio (Tier 1, including junior
subordinated debentures) |
5.54% |
5.82% |
8.84% |
Tangible cap/asset ratio (excluding preferred
stock and goodwill & intangibles) |
1.39% |
2.35% |
4.98% |
Total risk-based capital/risk-weighted asset
ratio |
10.26% |
10.67% |
13.15% |
|
|
|
|
|
|
Quarter Ended |
|
INTEREST SPREAD ANALYSIS (AVERAGE
YIELDS) |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
Yield on interest-earning deposits |
0.29% |
0.23% |
0.20% |
Yield on total loans |
5.58% |
5.67% |
5.54% |
Yield on investments |
2.20% |
2.28% |
4.11% |
Yield on earning assets |
4.67% |
4.62% |
5.35% |
|
|
|
|
Cost of deposits |
1.17% |
1.23% |
1.55% |
Cost of FHLB advances |
3.57% |
4.35% |
4.35% |
Cost of Federal Reserve borrowings |
0.00% |
0.00% |
0.25% |
Cost of securities sold under agreement to
repurchase |
5.95% |
5.94% |
5.88% |
Cost of junior subordinated debentures |
11.16% |
10.91% |
8.76% |
Cost of interest-bearing liabilities |
2.23% |
2.44% |
2.65% |
|
|
|
|
Net interest spread |
2.44% |
2.18% |
2.70% |
Net interest margin |
2.52% |
2.26% |
2.79% |
|
|
|
|
|
|
RECONCILIATION TO NON-GAAP FINANCIAL
MEASURES* |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
Quarter Ended |
|
Year
Ended |
AVERAGE TANGIBLE COMMON STOCKHOLDERS'
EQUITY |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2009 |
Loss attributable to common stockholders |
$ (8,632) |
$ (6,592) |
$ 521 |
$ (72,762) |
$ (25,833) |
Goodwill impairment |
-- |
-- |
-- |
12,885 |
11,700 |
(Loss) income attributable for common
stockholders (excluding |
$ (8,632) |
$ (6,592) |
$ 521 |
$ (59,877) |
$ (14,133) |
goodwill impairment) |
|
|
|
|
|
Average stockholders' equity |
$ 68,477 |
$ 84,748 |
$ 137,024 |
$ 94,099 |
$ 143,534 |
Less: average preferred stock |
37,417 |
37,189 |
36,968 |
37,247 |
36,818 |
Average common stockholders' equity |
31,060 |
47,559 |
100,056 |
56,852 |
106,716 |
Less: average goodwill and intangibles |
226 |
282 |
13,253 |
3,453 |
16,193 |
Average tangible common stockholders' equity
(excluding preferred stock |
$ 30,834 |
$ 47,277 |
$ 86,803 |
$ 53,399 |
$ 90,523 |
and goodwill and
intangibles) |
|
|
|
|
|
Return on average tangible common
stockholders' equity (annualized) |
-111.07% |
-55.93% |
2.38% |
-112.13% |
-15.61% |
|
|
|
|
|
|
|
|
Quarter Ended |
|
Year
Ended |
EFFICIENCY RATIO |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2009 |
Total other expenses |
$ 18,404 |
$ 11,698 |
$ 8,603 |
$ 65,089 |
$ 46,820 |
Less: goodwill impairment |
-- |
-- |
-- |
12,885 |
11,700 |
Less: OTTI |
172 |
-- |
-- |
172 |
858 |
Total other expenses (excluding goodwill
impairment and OTTI) |
$ 18,232 |
$ 11,698 |
$ 8,603 |
$ 52,032 |
$ 34,262 |
|
|
|
|
|
|
Net interest income |
$ 8,760 |
$ 8,527 |
$ 10,428 |
$ 36,439 |
$ 43,288 |
Other income |
7,795 |
5,199 |
7,628 |
18,744 |
16,629 |
Total income |
$ 16,555 |
$ 13,726 |
$ 18,056 |
$ 55,183 |
$ 59,917 |
|
|
|
|
|
|
Efficiency ratio (excluding goodwill
impairment and OTTI) |
110.13% |
85.23% |
47.65% |
94.29% |
57.18% |
|
|
|
|
|
|
TANGIBLE COMMON STOCKHOLDERS'
EQUITY |
Dec. 31, 2010 |
Sept. 30, 2010 |
Dec. 31, 2009 |
|
|
Total assets |
$ 1,498,334 |
$ 1,624,535 |
$ 1,704,628 |
|
|
Less: goodwill and intangibles |
211 |
247 |
13,237 |
|
|
Total tangible assets |
$ 1,498,123 |
$ 1,624,288 |
$ 1,691,391 |
|
|
|
|
|
|
|
|
Total stockholders' equity |
$ 58,452 |
$ 75,839 |
$ 134,450 |
|
|
Less: preferred stock |
37,488 |
37,374 |
37,038 |
|
|
Total common stockholders' equity |
20,964 |
38,465 |
97,412 |
|
|
Less: goodwill and intangibles |
211 |
247 |
13,237 |
|
|
Tangible common stockholders' equity |
$ 20,753 |
$ 38,218 |
$ 84,175 |
|
|
|
|
|
|
|
|
Tangible cap/asset ratio (excluding preferred
stock |
|
|
|
|
|
and goodwill and
intangibles) |
1.39% |
2.35% |
4.98% |
|
|
|
|
|
|
|
|
*Management believes that the
presentation of non-GAAP results provides useful information to
investors regarding the effects on the Company's |
|
reported results of operations. |
|
|
|
|
|
CONTACT: Investor Contacts:
Carol K. Nelson, CEO
Debra L. Johnson, CFO
Cascade Bank
425.339.5500
www.cascadebank.com
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