Bend-based Cascade Bancorp recorded a net loss of $47.3 million compared to a net loss of $13.7 million in 2010. The parent company of Bank of the Cascades made the disclosure in its annual report to shareholders, which was filed with the Securities and Exchange Commission March 27.
The 2011 loss was primarily due to a loan loss provision of $75.0 million for the year, $54.0 million of which related to the bulk sale of $110.0 million of mainly non-performing and substandard loans in September 2011.
The objective of the bulk sale was to improve the risk profile of the Company’s loan portfolio, thereby positioning the Company for a stronger future. As of December 31, 2011, Cascade Bancorp’s wholly owned subsidiary, Bank of the Cascades, had regulatory capital ratios in excess of ‘well capitalized’ regulatory benchmarks, and at the same time maintained a reserve for loan losses at over $43 million or 4.89% of gross loans; a level among the highest for community banks in the West.
“The year 2011 ushered in a time of transition for the banking industry as well as for our company,” said Terry E. Zink president & CEO of Cascade Bancorp. “As we enter our 35th year, I believe that we are moving into a position of strength. We believe that, for the most part, the credit problems in our loan portfolio have been identified and addressed. This enables us to return Cascade to its top priority of putting local deposits to work in the communities we serve in the form of business and consumer loans, including mortgages. This is our opportunity to further enhance the vitality of the markets we serve,” he added.
According to Zink, the Bank’s experienced lenders are aggressively pursuing new opportunities to provide quality credit to help businesses expand, foster job creation, give individuals and families better purchasing power, and drive the economic engines of communities in Central and Southern Oregon, Portland, Salem and Idaho.
“I believe we have the best combination of talent, local knowledge, expertise, passion and determination to accomplish our lending goals,” said Zink.
Earlier this year, Zink announced a pledge to lend $1 billion over the next three years to support the economic vitality of the Bank’s local communities and customers. When Zink made the pledge, he said, “Bank of the Cascades is a community bank and the success or failure of our bank resides in the success or failure of the communities we serve.”
More information about the Cascade Bancorp’s operations and performance during 2011, including financial statements, can be found in its Annual Report on Form 10-K. The report will be available on the Cascade Bancorp’s website at www.botc.com.
About Cascade Bancorp and Bank of the Cascades
Cascade Bancorp (NASDAQ: CACB), headquartered in Bend, Oregon, and its wholly owned subsidiary, Bank of the Cascades, operates in Oregon and Idaho markets. Founded in 1977, Bank of the Cascades offers full-service community banking through 32 branches in Central Oregon, Southern Oregon, Portland/Salem, and Boise/Treasure Valley. The Bank has a business strategy that focuses on delivering the best in community banking for the financial well-being of customers and shareholders. It executes its strategy through the consistent delivery of full relationship banking focused on attracting and retaining value driven customers. For further information, please visit our web site at www.botc.com.
