BEND, Ore., July 27, 2016 /PRNewswire/ -- Cascade
Bancorp (NASDAQ: CACB) ("Company" or "Cascade"), the holding
company for Bank of the Cascades ("Bank"), today announced its
financial results for the three and six months ended June 30, 2016.
Second Quarter 2016 Financial Highlights
- Net income for the second quarter of 2016 was $4.8 million, or $0.07 per share, compared to $1.9 million, or $0.03 per share, for the first quarter of 2016
("linked quarter") which included non-recurring net expense items
of $3.1 million (pretax), or
$0.03 per share (after tax).
- Net interest income was $22.2
million for the current and linked quarter, up 7.6% from the
linked quarter after adjusting for $1.5
million in non-recurring interest on called securities from
the prior quarter1. Stronger interest income is a result
of growth in earning assets funded by the deposits of the 15
branches recently acquired from Bank of America (the "branch
acquisition").
- Non-interest income was $7.8
million, up $2.3 million, or
42.4%, compared to the linked quarter, mainly due to increased
service fees and card related revenues from the recently acquired
branches.
- Non-interest expense was $22.3
million, down $2.2 million
from the linked quarter which included $2.3
million of one-time costs related to the branch acquisition
and $1.3 million related to branch
consolidations.
- The cost of funds remained stable at 0.08% for the quarter,
which includes $469.9 million in
deposits assumed in the branch acquisition.
- At June 30, 2016, gross loans
were $1.9 billion compared to
$1.8 billion as of March 31, 2016. Second quarter organic loan
growth2 was $75.0 million,
or 20.6% annualized.
- At June 30, 2016, total deposits
were $2.6 billion, consistent with
the linked quarter, with 97.8% retention of the deposits assumed in
the Bank of America branch acquisition.
- The net interest margin ("NIM") was 3.40% for the second
quarter of 2016, with approximately 75% deployment of the deposits
assumed in the branch acquisition into securities and wholesale
loans at a targeted yield of 2.25%.
- Net loan recoveries for the second quarter were $0.2 million. The allowance for loan losses
("ALLL") at quarter end was 1.30% of gross loans. No provision or
credit for loan losses was recorded in the current quarter. Credit
metrics improved with lower classified loans.
- At June 30, 2016, stockholders'
equity was $345.3 million, with book
value per share of $4.71 and tangible
book value per share3 of $3.41.
- Return on average assets and return on average tangible
assets4 in the current quarter was 0.65% and 0.68%,
respectively, compared to 0.30% and 0.31% in the linked quarter,
respectively.
- Return on average stockholders' equity and return on average
tangible stockholders' equity5 in the current quarter
was 5.65% and 7.85%, respectively, compared to 2.30% and 3.07% in
the linked quarter, respectively.
"I am very pleased with the quarter's progress towards our goal
of building a valuable banking franchise in the attractive growth
markets of the Pacific Northwest," commented Terry Zink, President and CEO of Cascade
Bancorp. "We retained 97.8% of the deposits we assumed in the
purchase of the former Bank of America branches in March,
demonstrating the strength of Cascade's high touch community
banking model. We are now focused on driving fee income as
well as deploying the acquired deposits into higher yielding loans
through the balance of the year. The early results are
positive with strong increases in both non-interest income and loan
growth."
Mr. Zink continued, "Also during the quarter, we announced the
acquisition of Prime Pacific Bank, N.A., located in the
Greater Seattle market. We
believe that Prime Pacific will complement our newly opened
downtown Seattle commercial
banking center, as well as expand our venture into a larger Small
Business Administration strategy. Prime Pacific's growth was
constrained by capital and core deposits, so it represents an
attractive area for further deployment of Cascade's low cost
deposit base. Subject to the satisfaction of customary
closing conditions, we expect to close the acquisition in August
with modest accretion to tangible book value and earnings through
the second half of the year. Importantly, we see the
opportunity to build a $1 billion
bank in the Seattle MSA over time."
Bank of the Cascades President, Chip
Reeves added, "We continue to experience strong momentum as
our bankers delivered double digit revenue and loan growth through
the second quarter. We believe investments in talented
bankers combined with the recent opening of our Seattle commercial banking center are
contributing to these robust results. Additionally, I am
extremely pleased with the progress that our new Idaho region president, Rob Perez, and his team have made in a very
short period of time. Looking forward, Cascade's new business
pipeline appears strong across our footprint, supporting our
ambition to sustain organic loan growth above the level of our
peers."
Financial Review
Prime Pacific Financial ("PPF") Acquisition Update:
Subject to the satisfaction of customary closing conditions, the
purchase of the $123 million asset
PPF is expected to be completed in August
2016, with customer system conversion in the fourth
quarter. PPF is headquartered in Lynnwood, Washington at the convenient
intersection of the I-5 and I-405 traffic corridors. This
location complements Cascade Bancorp's existing downtown
Seattle commercial banking
location. During the third quarter, Cascade expects to record
one time transaction costs of approximately $3.5 million in connection with the transaction.
The transaction is expected to be accretive to tangible book value
and earnings.
Bank of America Branch Acquisition:
The financial statements as of June 30,
2016 are inclusive of deposit liabilities assumed in
connection with the acquisition of 15 Bank of America
branches. The transaction closed on March 4, 2016, with the assumption of
approximately $469.9 million in
Oregon and Washington deposits. The following comparative
balance sheet and income statement information is notably affected
by the branch acquisition, including certain one-time charges
recorded in connection with the transaction.
Balance Sheet:
At June 30, 2016 as compared to
December 31, 2015 and June 30, 2015
Total assets at June 30, 2016 were $3.0 billion compared to $2.5 billion as of December 31, 2015 and $2.4
billion a year ago, with the increase over prior periods due
primarily to assets assumed with the closing of the branch
acquisition during the first quarter and loan growth.
Cash equivalents at June 30, 2016 were $178.8 million due to increased deposits assumed
in the branch acquisition, compared to $77.8
million and $79.8 million as
of December 31, 2015 and
June 30, 2015, respectively.
Investment securities classified as available-for-sale and
held-to-maturity increased to $604.2
million at June 30, 2016 as compared to $449.7 million at December
31, 2015 and $458.6 million a
year ago. The increase is due to the deployment of cash
assumed in the branch acquisition into investment securities and
adjustable rate mortgages ("ARMs"). The deployment of
remaining cash from the branch acquisition is expected to continue
into the third quarter. Management continues to anticipate
the yield on these new earning assets will average 2.25% in
aggregate, including certain fixed and floating rate securities as
well as whole loan ARM purchases.
Gross loans at June 30, 2016, were $1.9 billion, up $214.3
million, or 25.6% (annualized), from the year end with
significant growth across commercial real estate, consumer
residential, commercial and industrial ("C&I") and construction
loans. The increase over the linked quarter includes both
organic loan growth and purchased loans related to deployment of
funds received in the branch acquisition. Organic loan growth was
20.6% (annualized) for the quarter ended June 30, 2016 and was largely centered in our
C&I and commercial portfolios. Organic loan growth was
achieved across all regions of the bank's footprint.
Wholesale loan portfolios are designed to diversify the
Company's overall loan portfolio by geography industry and loan
type. To that end, the purchased ARM portfolio totaled
$211.4 million at June 30, 2016
compared to $100.1 million at
December 31, 2015 and $68.1 million a year ago. Meanwhile, the
shared national credit portfolio balances, which declined due to
runoff, were $146.6 million at
June 30, 2016 compared to $160.6
million for the linked quarter and $194.2 million a year earlier.
The ALLL at June 30, 2016 was steady at $24.7 million as compared to December 31, 2015 with net recoveries of
$0.2 million during the second
quarter. See additional discussion in "Asset Quality"
below.
Total deposits as of June 30, 2016 increased 22.9% to
$2.6 billion compared to $2.1 billion as of December 31, 2015, and $2.0 billion as of June 30, 2015.
These increases were mainly attributable to the $469.9 million of deposits assumed in the branch
acquisition. Non-interest bearing deposits were $876.9 million, or 34.3% of total deposits.
Combined with interest checking balances, total checking balances
were 56.3% of total deposits. Money market and saving
accounts were 35.7% while CDs were 8.0% of total
deposits.
The overall cost of funds for the quarter was 0.08%, including
the cost of deposits from the branch acquisition.
Total stockholders' equity at June 30, 2016 was
$345.3 million compared to
$336.8 million at December 31, 2015. This increase is primarily a
result of the year-to-date 2016 net income of $6.8 million. Tangible common stockholders'
equity6 was $249.9
million, or $3.41 per share,
at June 30, 2016, as compared to
$251.3 million, or $3.45 per share, at December 31, 2015. The ratios of common
stockholders' equity to total assets and tangible common
stockholders' equity to total assets7 were 11.64% and
8.43% at June 30, 2016, respectively, and 13.65% and 10.18% at
December 31, 2015, respectively.
Income Statement:
Quarter Comparison: Quarter ended June 30, 2016 as compared to the quarter ended
March 31, 2016 and June 30, 2015
Net income for the second quarter of 2016 was $4.8 million, or $0.07 per share, compared to $1.9 million, or $0.03 per share, for the linked quarter and
$4.8 million, or $0.07 per share, for the second quarter
2015. The linked quarter included approximately $3.1 million in net pretax non-recurring items,
mainly related to costs incurred in connection with the branch
acquisition, such as customer integration and IT conversion
expenses, as well as certain branch consolidation costs. These
costs were partially offset by $1.5
million in earnings on investment securities called during
that period.
Net interest income for the second quarter 2016 was $22.2 million, consistent with the linked quarter
which included $1.5 million in
non-recurring interest on called investment securities. The
increase in run-rate is due to the deployment of cash received from
the branch acquisition into securities and wholesale loans.
NIM was 3.40% for the second quarter of 2016, compared to 3.80%
in the linked quarter. As adjusted to exclude the
aforementioned interest income on called securities, the NIM for
the prior quarter would have been 3.54%8. The NIM
for the second quarter a year ago was 3.70%. The NIM declined
from prior periods because of the deployment of assumed funds into
lower yielding securities and wholesale loans. The Company's
goal is to replace these wholesale assets with originated loans
over time.
Non-interest income for the second quarter of 2016 was
$7.8 million, compared to
$5.5 million in the linked quarter
and $6.7 million in the second
quarter 2015. Service fees were higher on a linked quarter basis
mainly owing to higher transaction volumes, including those from
locations acquired in the branch acquisition. Mortgage
related revenues were up 81.6% compared to the linked quarter on
seasonally stronger origination volumes. SBA-related revenues
were up $0.2 million over the linked
quarter and other income rebounded with a $0.3 million gain on sale of a decommissioned
branch.
Non-interest expense in the second quarter of 2016 was
$22.3 million compared to
$24.5 million in the linked quarter
and $18.4 million in the second
quarter 2015. The decrease from the linked quarter was mainly
due to the effects of the one-time acquisition and integration
costs incurred with the branch acquisition that totaled
approximately $2.3 million. The
linked quarter also included non-recurring costs of $1.3 million to consolidate four branch
locations, including contract termination and severance.
Non-recurring expenses in the current quarter were approximately
$0.5 million, including loss share
true up and legal expenses for the PPF acquisition.
Management expects the third quarter results will include one-time
costs related to the expected PPF closing, but revenue should
accelerate with the addition of loans and service fee income from
PPF.
There was no provision for loan loss in the current quarter,
linked quarter or second quarter of 2015.
The income tax provision for the second quarter of 2016 was
$2.8 million, representing a 36.9%
effective tax rate for the period. Management expects the
full year effective rate to be approximately 38.1%.
Comparison with year ago period: For the six months
ended June 30, 2016 and 2015
Net income for the six months ended June
30, 2016 was $6.8 million, or
$0.09 per share, compared to
$9.9 million, or $0.14 per share, for the comparable 2015
period. Lower net income is mainly due to the one-time costs
incurred in connection with the branch acquisition as described
above.
Net interest income for the six months ended June 30, 2016 was higher than six months ended
June 30, 2015 (the "year ago period")
primarily due to net revenues arising from higher earning assets,
as well as $1.5 million in
non-recurring interest on called securities in the current
period.
Non-interest income for the six months ended June 30, 2016 was $13.2
million, up from $12.8 million
during the year ago period. Year-over-year organic changes include
higher revenues on transaction volumes related to services fees and
card activity largely related to increase customer base with the
acquired branches. Mortgage, swap and other income were off
slightly as compared to the year ago period. The year ago period
included a gain on sale of decommissioned branches and a
contractual arrangement for future revenue-sharing of merchant
services, together totaling $1.3
million.
Non-interest expense in the six months ended June 30, 2016 was $46.9
million compared to $37.2
million in the year ago period. Higher expense during the
six months ended June 30, 2016
compared to the year ago period relate primarily to one-time costs
incurred in connection with the branch acquisition, as well as
increased salaries and occupancy costs related to our expanded
presence resulting from the branch acquisition.
Income tax expense in the six months ended June 30, 2016 was $4.0
million as compared to $6.0
million in the year ago period.
Asset Quality
For the quarter ended June 30,
2016, net recoveries were approximately $0.2 million resulting in an increase to the
balance in the reserve for loan losses to $24.7 million. The ratio of loan loss
reserve to total loans was 1.30% at June 30,
2016 compared to 1.37% at March 31,
2016 and 1.45% at June 30,
2015. The decline in this ratio is related to continuing
positive credit metrics as well as an increase in total loan
balances.
Non-performing assets as a percentage of total assets was 0.51%
at June 30, 2016, as compared to
0.49% at March 31, 2016 and 0.41% at
June 30, 2015. At June 30, 2016, delinquent loans were 0.19% of the
loan portfolio. This compares to 0.30% at March 31, 2016 and 0.07% at June 30, 2015.
As previously reported, the linked quarter included a
$3.3 million recovery on a previously
charged off loan. This was partially offset by a $2.7 million charge off related to downgrades in
the shared national credit portfolio with exposure to the oil and
mining sector. The Company's aggregate mining and energy exposure
remains less than 1.0% of total loans and management believes it is
adequately reserved for such risks. Risk-rating downgrades
were partially offset by several upgrades of previously adversely
risk rated credits.
Conference Call
As previously announced, a conference call and webcast
discussing the second quarter 2016 results will be held today,
July 27, 2016 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Stockholders, analysts
and other interested parties are invited to join the webcast by
registering at http://public.viavid.com/index.php?id=120240 or
the live conference call by dialing (877) 407-4018 prior to
2:00 p.m. Pacific Time.
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 the Pacific Northwest. Founded in
1977, Bank of the Cascades offers full-service community banking
through 48 branches in Oregon,
Idaho and Washington. 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 website at
www.botc.com.
NON-GAAP FINANCIAL MEASURES
This release contains certain non-GAAP financial measures.
The Company's management uses these non-GAAP financial measures,
specifically efficiency ratio, adjusted net interest margin, return
on average tangible assets, return on average stockholders' equity,
organic loan growth, tangible book value per common share, tangible
common equity ratio to total assets and tangible stockholders'
equity, as important measures of the strength of its capital and
its ability to generate earnings on its tangible capital invested
by its shareholders. Management believes presentation of
these non-GAAP financial measures provides useful supplemental
information to our investors and others that contributes to a
proper understanding of the financial results and capital levels of
the Company. Management also uses these non-GAAP financial measures
in making financial, operating and planning decisions and in
evaluating the Company's performance. These non-GAAP disclosures
should not be viewed as a substitute for financial results
determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP performance measures that may be presented
by other companies. Reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures
are included in the table at the end of this release under the
caption "Reconciliation of Non-GAAP Financial Measures."
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements about
Cascade Bancorp's plans and anticipated results of operations and
financial condition. These statements include, but are not limited
to, our plans, objectives, expectations, and intentions and are not
statements of historical fact. When used in this report, the word
"expects," "believes," "anticipates," "could," "may," "will,"
"should," "plan," "predicts," "projections," "continue" and other
similar expressions constitute forward-looking statements, as do
any other statements that expressly or implicitly predict future
events, results or performance, and such statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Certain risks and uncertainties and
Cascade Bancorp's success in managing such risks and uncertainties
and could cause actual results to differ materially from those
projected and/or adversely affect our results of operations and
financial condition. Such factors could include: local and
national economic conditions; housing/real estate market prices,
employment and wages rates, as well as historically low interest
rates and/or the rate of change in such rates. Such
factors, depending on severity, could adversely affect credit
quality, collateral values, including real estate collateral and
OREO (other real estate owned) properties, investment values,
liquidity, the pace of loan growth and /or originations, the
adequacy of reserves for loan losses including the trend and amount
of loan charge offs and delinquency rates. These factors may be
exacerbated by our concentration of operations in the States of
Oregon, Idaho and Washington generally, and Central, Southern
and Northwest Oregon, as well as
the greater Boise/Treasure
Valley, Idaho and greater
Seattle, Washington areas,
specifically; interest rate changes could significantly reduce net
interest income and negatively affect funding sources; competition
among financial institutions could increase significantly;
competition or changes in interest rates could negatively affect
net interest margin, as could other factors listed from time to
time in Cascade Bancorp's reports filed with or furnished to the
Securities and Exchange Commission (the "SEC"); the reputation of
the financial services industry could further deteriorate, which
could adversely affect our ability to access markets for funding
and to acquire and retain customers; and existing regulatory
requirements, changes in regulatory requirements and legislation
(including, without limitation, the Dodd-Frank Wall Street Reform
and Consumer Protection Act) and our inability to meet those
requirements, including capital requirements and increases in our
deposit insurance premium, could adversely affect the businesses in
which we are engaged, our results of operations and our financial
condition. Such forward-looking statements also include, but are
not limited to, statements about our strategy to expand our loan
portfolio to markets outside our branch network, including
Portland, Oregon and Seattle, Washington, and our ability to
execute our business plan, both of which could be affected by our
ability to obtain regulatory approval for any expansionary
activities. Additional risks and uncertainties are identified and
discussed in Cascade Bancorp's reports filed with or furnished to
the SEC and available at the SEC's website at www.sec.gov.
However, you should be aware that these factors are not an
exhaustive list, and you should not assume these are the only
factors that may cause our actual results to differ materially from
our expectations. These forward-looking statements speak only as of
the date of this release. Cascade Bancorp undertakes no obligation
to update or publish revised forward-looking statements to reflect
the impact of events or circumstances that may arise after the date
hereof, except as required by applicable law. Readers should
carefully review all disclosures filed or furnished by Cascade
Bancorp from time to time with the SEC.
Information contained herein, other than information at
December 31, 2015, and for the twelve
months then ended, is unaudited. All financial data should be read
in conjunction with the notes to the consolidated financial
statements of Cascade Bancorp and subsidiary as of and for the
fiscal year ended December 31, 2015,
as contained in the Company's Annual Report on Form 10-K for such
fiscal year.
1
|
Adjusted net interest
income growth is a non-GAAP measure calculated as Q2 2016 net
interest income less Q1 2016 net interest income reduced for $1.5
million related to non-recurring interest on called
securities. See the last page of this release for a
reconciliation of adjusted net interest income growth.
|
|
|
2
|
Organic loan growth
is a non-GAAP measure defined as total loan growth less acquired
loans during the period. See the last page of this release for a
reconciliation of organic loan growth.
|
|
|
3
|
Tangible book value
per common share is a non-GAAP measure defined as total
stockholders' equity, less the sum of core deposit intangible
("CDI") and goodwill, divided by total number of shares
outstanding. See the last page of this release for a
reconciliation of tangible book value per common share.
|
|
|
4
|
Return on average
tangible assets is a non-GAAP measure defined as net income divided
by average total assets, less the sum of average CDI and goodwill.
See the last page of this release for a reconciliation of return on
average tangible assets.
|
|
|
5
|
Return on average
tangible stockholders' equity is a non-GAAP measure defined as net
income divided by average total stockholders' equity, less the sum
of average CDI and goodwill. See last page of this release for a
reconciliation of return on average tangible stockholders'
equity.
|
|
|
6
|
Tangible
stockholders' equity is a non-GAAP measure defined as total
stockholders' equity, less the sum of CDI and goodwill. See the
last page of this release for a reconciliation of tangible
stockholders' equity.
|
|
|
7
|
Tangible common
stockholders' equity to total assets is a non-GAAP measure defined
as total stockholders' equity, less the sum of core deposit
intangible ("CDI") and goodwill, divided by total assets. See the
last page of this release for a reconciliation of tangible common
stockholders' equity to total assets.
|
|
|
8
|
Adjusted NIM is a
non-GAAP measure. See reconciliation of adjusted NIM at the end of
this release.
|
CASCADE
BANCORP
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands)
(Unaudited)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
ASSETS
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
59,453
|
|
|
$
|
46,354
|
|
|
$
|
45,598
|
|
Interest bearing
deposits
|
|
119,088
|
|
|
31,178
|
|
|
33,913
|
|
Federal funds
sold
|
|
273
|
|
|
273
|
|
|
273
|
|
Total cash and cash
equivalents
|
|
178,814
|
|
|
77,805
|
|
|
79,784
|
|
Investment securities
available-for-sale
|
|
462,013
|
|
|
310,262
|
|
|
310,743
|
|
Investment securities
held-to-maturity
|
|
142,211
|
|
|
139,424
|
|
|
147,863
|
|
Federal Home Loan
Bank (FHLB) stock
|
|
3,130
|
|
|
3,000
|
|
|
3,026
|
|
Loans held for
sale
|
|
3,732
|
|
|
3,621
|
|
|
2,164
|
|
Loans, net
|
|
1,876,237
|
|
|
1,662,095
|
|
|
1,601,058
|
|
Premises and
equipment, net
|
|
45,238
|
|
|
42,031
|
|
|
42,509
|
|
Bank-owned life
insurance
|
|
54,957
|
|
|
54,450
|
|
|
53,933
|
|
Other real estate
owned, net
|
|
2,993
|
|
|
3,274
|
|
|
4,040
|
|
Deferred tax asset,
net
|
|
46,538
|
|
|
50,673
|
|
|
56,612
|
|
Core deposit
intangible
|
|
12,720
|
|
|
6,863
|
|
|
7,273
|
|
Goodwill
|
|
82,594
|
|
|
78,610
|
|
|
78,610
|
|
Other
assets
|
|
55,397
|
|
|
35,921
|
|
|
30,872
|
|
Total
assets
|
|
$
|
2,966,574
|
|
|
$
|
2,468,029
|
|
|
$
|
2,418,487
|
|
LIABILITIES &
STOCKHOLDERS' EQUITY
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Demand
|
|
$
|
876,880
|
|
|
$
|
727,730
|
|
|
$
|
705,232
|
|
Interest bearing
demand
|
|
1,306,164
|
|
|
1,044,134
|
|
|
1,005,394
|
|
Savings
|
|
173,012
|
|
|
135,527
|
|
|
132,920
|
|
Time
|
|
203,898
|
|
|
175,697
|
|
|
202,969
|
|
Total
deposits
|
|
2,559,954
|
|
|
2,083,088
|
|
|
2,046,515
|
|
Other
liabilities
|
|
61,360
|
|
|
48,167
|
|
|
46,616
|
|
Total
liabilities
|
|
2,621,314
|
|
|
2,131,255
|
|
|
2,093,131
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred stock, no
par value; 5,000,000 shares authorized; none issued or
outstanding
|
|
—
|
|
|
—
|
|
|
—
|
|
Common stock, no par
value; 100,000,000 shares authorized
|
|
453,970
|
|
|
452,925
|
|
|
451,481
|
|
Accumulated
deficit
|
|
(111,008)
|
|
|
(117,772)
|
|
|
(128,438)
|
|
Accumulated other
comprehensive income
|
|
2,298
|
|
|
1,621
|
|
|
2,313
|
|
Total stockholders'
equity
|
|
345,260
|
|
|
336,774
|
|
|
325,356
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,966,574
|
|
|
$
|
2,468,029
|
|
|
$
|
2,418,487
|
|
CASCADE
BANCORP
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands)
(Unaudited)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
19,037
|
|
|
$
|
17,920
|
|
|
$
|
16,987
|
|
|
$
|
36,957
|
|
|
$
|
33,481
|
|
Interest on
investments
|
|
3,429
|
|
|
4,618
|
|
|
2,805
|
|
|
8,047
|
|
|
5,788
|
|
Other investment
income
|
|
273
|
|
|
156
|
|
|
27
|
|
|
429
|
|
|
60
|
|
Total interest
income
|
|
22,739
|
|
|
22,694
|
|
|
19,819
|
|
|
45,433
|
|
|
39,329
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand
|
|
458
|
|
|
413
|
|
|
315
|
|
|
871
|
|
|
628
|
|
Savings
|
|
13
|
|
|
11
|
|
|
10
|
|
|
24
|
|
|
20
|
|
Time
|
|
52
|
|
|
85
|
|
|
136
|
|
|
137
|
|
|
359
|
|
Other
borrowings
|
|
—
|
|
|
26
|
|
|
6
|
|
|
26
|
|
|
6
|
|
Total interest
expense
|
|
523
|
|
|
535
|
|
|
467
|
|
|
1,058
|
|
|
1,013
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
22,216
|
|
|
22,159
|
|
|
19,352
|
|
|
44,375
|
|
|
38,316
|
|
Loan loss provision
(recovery)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000)
|
|
Net interest income
after loan loss provision
|
|
22,216
|
|
|
22,159
|
|
|
19,352
|
|
|
44,375
|
|
|
40,316
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
1,729
|
|
|
1,372
|
|
|
1,249
|
|
|
3,101
|
|
|
2,510
|
|
Card issuer and
merchant services fees, net
|
|
2,700
|
|
|
1,835
|
|
|
1,856
|
|
|
4,535
|
|
|
3,499
|
|
Earnings on
BOLI
|
|
249
|
|
|
258
|
|
|
242
|
|
|
507
|
|
|
484
|
|
Mortgage banking
income, net
|
|
899
|
|
|
495
|
|
|
677
|
|
|
1,394
|
|
|
1,465
|
|
Swap fee
income
|
|
466
|
|
|
666
|
|
|
785
|
|
|
1,132
|
|
|
1,300
|
|
SBA gain on sales and
fee income
|
|
386
|
|
|
174
|
|
|
144
|
|
|
560
|
|
|
506
|
|
Loss on sales of
investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
income
|
|
1,342
|
|
|
656
|
|
|
1,742
|
|
|
1,998
|
|
|
3,053
|
|
Total non-interest
income
|
|
7,771
|
|
|
5,456
|
|
|
6,695
|
|
|
13,227
|
|
|
12,817
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
13,089
|
|
|
13,029
|
|
|
10,588
|
|
|
26,118
|
|
|
21,718
|
|
Occupancy
|
|
1,647
|
|
|
2,680
|
|
|
1,417
|
|
|
4,327
|
|
|
2,783
|
|
Information
technology
|
|
1,182
|
|
|
1,397
|
|
|
1,046
|
|
|
2,579
|
|
|
1,984
|
|
Equipment
|
|
310
|
|
|
448
|
|
|
395
|
|
|
758
|
|
|
752
|
|
Communications
|
|
683
|
|
|
610
|
|
|
484
|
|
|
1,293
|
|
|
1,025
|
|
FDIC
insurance
|
|
455
|
|
|
377
|
|
|
306
|
|
|
832
|
|
|
704
|
|
OREO
|
|
(119)
|
|
|
212
|
|
|
(168)
|
|
|
93
|
|
|
(111)
|
|
Professional
services
|
|
1,060
|
|
|
1,598
|
|
|
1,289
|
|
|
2,658
|
|
|
2,246
|
|
Card
issuer
|
|
1,044
|
|
|
909
|
|
|
643
|
|
|
1,953
|
|
|
1,506
|
|
Insurance
|
|
158
|
|
|
175
|
|
|
191
|
|
|
333
|
|
|
400
|
|
Other
expenses
|
|
2,826
|
|
|
3,083
|
|
|
2,200
|
|
|
5,909
|
|
|
4,204
|
|
Total non-interest
expense
|
|
22,335
|
|
|
24,518
|
|
|
18,391
|
|
|
46,853
|
|
|
37,211
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
7,652
|
|
|
3,097
|
|
|
7,656
|
|
|
10,749
|
|
|
15,922
|
|
Income tax
provision
|
|
(2,828)
|
|
|
(1,157)
|
|
|
(2,861)
|
|
|
(3,985)
|
|
|
(6,009)
|
|
Net income
|
|
$
|
4,824
|
|
|
$
|
1,940
|
|
|
$
|
4,795
|
|
|
$
|
6,764
|
|
|
$
|
9,913
|
|
CASCADE
BANCORP
|
NET INTEREST
MARGIN
|
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
2016
|
|
2015
|
|
Average Balance
|
|
Interest Income/ Expense
|
|
Average Yield or Rates
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Yield or
Rates
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
$
|
584,492
|
|
|
$
|
3,429
|
|
|
2.36
|
%
|
|
$
|
460,295
|
|
|
$
|
2,805
|
|
|
2.44
|
%
|
Interest bearing
balances due from other banks
|
214,483
|
|
|
273
|
|
|
0.51
|
%
|
|
39,725
|
|
|
27
|
|
|
0.27
|
%
|
Federal funds
sold
|
273
|
|
|
—
|
|
|
—
|
%
|
|
273
|
|
|
—
|
|
|
—
|
%
|
Federal Home Loan
Bank stock
|
3,133
|
|
|
—
|
|
|
—
|
%
|
|
18,011
|
|
|
—
|
|
|
—
|
%
|
Loans
|
1,828,096
|
|
|
19,037
|
|
|
4.19
|
%
|
|
1,581,056
|
|
|
16,987
|
|
|
4.31
|
%
|
Total earning
assets/interest income
|
2,630,477
|
|
|
22,739
|
|
|
3.48
|
%
|
|
2,099,360
|
|
|
19,819
|
|
|
3.79
|
%
|
Reserve for loan
losses
|
(24,761)
|
|
|
|
|
|
|
(23,427)
|
|
|
|
|
|
Cash and due from
banks
|
54,441
|
|
|
|
|
|
|
42,109
|
|
|
|
|
|
Premises and
equipment, net
|
45,268
|
|
|
|
|
|
|
43,187
|
|
|
|
|
|
Bank-owned life
insurance
|
54,809
|
|
|
|
|
|
|
53,787
|
|
|
|
|
|
Deferred tax
asset
|
48,463
|
|
|
|
|
|
|
61,310
|
|
|
|
|
|
Goodwill
|
82,594
|
|
|
|
|
|
|
78,610
|
|
|
|
|
|
Core deposit
intangible
|
12,865
|
|
|
|
|
|
|
7,344
|
|
|
|
|
|
Accrued interest and
other assets
|
57,697
|
|
|
|
|
|
|
37,042
|
|
|
|
|
|
Total
assets
|
$
|
2,961,853
|
|
|
|
|
|
|
$
|
2,399,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
$
|
1,316,077
|
|
|
458
|
|
|
0.14
|
%
|
|
$
|
999,416
|
|
|
315
|
|
|
0.13
|
%
|
Savings
deposits
|
171,691
|
|
|
13
|
|
|
0.03
|
%
|
|
132,548
|
|
|
10
|
|
|
0.03
|
%
|
Time
deposits
|
212,057
|
|
|
52
|
|
|
0.10
|
%
|
|
207,817
|
|
|
136
|
|
|
0.26
|
%
|
Other
borrowings
|
—
|
|
|
—
|
|
|
—
|
%
|
|
6,484
|
|
|
6
|
|
|
0.37
|
%
|
Total interest
bearing liabilities/interest expense
|
1,699,825
|
|
|
523
|
|
|
0.12
|
%
|
|
1,346,265
|
|
|
467
|
|
|
0.14
|
%
|
Demand
deposits
|
864,419
|
|
|
|
|
|
|
683,141
|
|
|
|
|
|
Other
liabilities
|
55,018
|
|
|
|
|
|
|
45,294
|
|
|
|
|
|
Total
liabilities
|
2,619,262
|
|
|
|
|
|
|
2,074,700
|
|
|
|
|
|
Stockholders'
equity
|
342,591
|
|
|
|
|
|
|
324,622
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
2,961,853
|
|
|
|
|
|
|
$
|
2,399,322
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
22,216
|
|
|
|
|
|
|
$
|
19,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
3.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
to earning assets
|
|
|
|
|
3.40
|
%
|
|
|
|
|
|
3.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
CASCADE
BANCORP
|
NET INTEREST
MARGIN
|
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
Average Balance
|
|
Interest Income/ Expense
|
|
Average Yield or Rates
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Yield or
Rates
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
$
|
546,513
|
|
|
$
|
8,047
|
|
|
2.96
|
%
|
|
$
|
463,703
|
|
|
$
|
5,788
|
|
|
2.52
|
%
|
Interest bearing
balances due from other banks
|
165,048
|
|
|
429
|
|
|
0.52
|
%
|
|
44,319
|
|
|
60
|
|
|
0.27
|
%
|
Federal funds
sold
|
273
|
|
|
—
|
|
|
—
|
%
|
|
273
|
|
|
—
|
|
|
—
|
%
|
Federal Home Loan
Bank stock
|
3,516
|
|
|
—
|
|
|
—
|
%
|
|
21,774
|
|
|
—
|
|
|
—
|
%
|
Loans
|
1,774,091
|
|
|
36,957
|
|
|
4.19
|
%
|
|
1,547,101
|
|
|
33,481
|
|
|
4.36
|
%
|
Total earning
assets/interest income
|
2,489,441
|
|
|
45,433
|
|
|
3.67
|
%
|
|
2,077,170
|
|
|
39,329
|
|
|
3.82
|
%
|
Reserve for loan
losses
|
(25,676)
|
|
|
|
|
|
|
(23,491)
|
|
|
|
|
|
Cash and due from
banks
|
51,846
|
|
|
|
|
|
|
41,592
|
|
|
|
|
|
Premises and
equipment, net
|
43,679
|
|
|
|
|
|
|
43,360
|
|
|
|
|
|
Bank-owned life
insurance
|
54,684
|
|
|
|
|
|
|
53,669
|
|
|
|
|
|
Deferred tax
asset
|
49,122
|
|
|
|
|
|
|
63,800
|
|
|
|
|
|
Goodwill
|
80,624
|
|
|
|
|
|
|
79,277
|
|
|
|
|
|
Core deposit
intangible
|
9,833
|
|
|
|
|
|
|
7,446
|
|
|
|
|
|
Accrued interest and
other assets
|
46,657
|
|
|
|
|
|
|
36,338
|
|
|
|
|
|
Total
assets
|
$
|
2,800,210
|
|
|
|
|
|
|
$
|
2,379,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
$
|
1,222,834
|
|
|
871
|
|
|
0.14
|
%
|
|
$
|
997,850
|
|
|
628
|
|
|
0.13
|
%
|
Savings
deposits
|
158,974
|
|
|
24
|
|
|
0.03
|
%
|
|
132,029
|
|
|
20
|
|
|
0.03
|
%
|
Time
deposits
|
199,186
|
|
|
137
|
|
|
0.14
|
%
|
|
216,258
|
|
|
359
|
|
|
0.33
|
%
|
Other
borrowings
|
11,423
|
|
|
26
|
|
|
0.46
|
%
|
|
3,398
|
|
|
6
|
|
|
0.36
|
%
|
Total interest
bearing liabilities/interest expense
|
1,592,417
|
|
|
1,058
|
|
|
0.13
|
%
|
|
1,349,535
|
|
|
1,013
|
|
|
0.15
|
%
|
Demand
deposits
|
813,958
|
|
|
|
|
|
|
662,879
|
|
|
|
|
|
Other
liabilities
|
52,922
|
|
|
|
|
|
|
45,183
|
|
|
|
|
|
Total
liabilities
|
2,459,297
|
|
|
|
|
|
|
2,057,597
|
|
|
|
|
|
Stockholders'
equity
|
340,913
|
|
|
|
|
|
|
321,564
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
2,800,210
|
|
|
|
|
|
|
$
|
2,379,161
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
44,375
|
|
|
|
|
|
|
$
|
38,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread
|
|
|
|
|
3.54
|
%
|
|
|
|
|
|
3.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
to earning assets
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
3.72
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
CASCADE
BANCORP
|
ADDITIONAL
FINANCIAL INFORMATION
|
(In thousands,
except per share data) (Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
|
$
|
0.07
|
|
|
$
|
0.03
|
|
|
$
|
0.07
|
|
|
$
|
0.09
|
|
|
$
|
0.14
|
|
Diluted net income
per common share
|
|
$
|
0.07
|
|
|
$
|
0.03
|
|
|
$
|
0.07
|
|
|
$
|
0.09
|
|
|
$
|
0.14
|
|
Book value per basic
common share
|
|
$
|
4.71
|
|
|
$
|
4.67
|
|
|
$
|
4.47
|
|
|
$
|
4.71
|
|
|
$
|
4.47
|
|
Tangible book value
per common share1
|
|
$
|
3.41
|
|
|
$
|
3.35
|
|
|
$
|
3.29
|
|
|
$
|
3.41
|
|
|
$
|
3.29
|
|
Basic average shares
outstanding
|
|
71,945
|
|
|
71,884
|
|
|
71,689
|
|
|
71,914
|
|
|
71,681
|
|
Fully diluted average
shares outstanding
|
|
72,233
|
|
|
72,153
|
|
|
71,727
|
|
|
72,529
|
|
|
71,789
|
|
Balance Sheet
Detail
|
|
|
|
|
|
|
|
|
|
|
Gross
loans
|
|
$
|
1,900,902
|
|
|
$
|
1,783,028
|
|
|
$
|
1,624,559
|
|
|
$
|
1,900,902
|
|
|
$
|
1,624,559
|
|
Wholesale
loans
|
|
$
|
358,005
|
|
|
$
|
315,163
|
|
|
$
|
262,328
|
|
|
$
|
358,005
|
|
|
$
|
262,328
|
|
Total organic
loans
|
|
$
|
1,542,897
|
|
|
$
|
1,467,865
|
|
|
$
|
1,362,231
|
|
|
$
|
1,542,897
|
|
|
$
|
1,362,231
|
|
Total
deposits
|
|
$
|
2,559,954
|
|
|
$
|
2,576,038
|
|
|
$
|
2,046,515
|
|
|
$
|
2,559,954
|
|
|
$
|
2,046,515
|
|
Non-interest
bearing
|
|
$
|
876,880
|
|
|
$
|
867,646
|
|
|
$
|
705,232
|
|
|
$
|
876,880
|
|
|
$
|
705,232
|
|
Total checking
balances
|
|
$
|
1,442,003
|
|
|
$
|
1,426,471
|
|
|
$
|
1,143,102
|
|
|
$
|
1,442,003
|
|
|
$
|
1,143,102
|
|
Money
market
|
|
$
|
741,041
|
|
|
$
|
758,899
|
|
|
$
|
567,524
|
|
|
$
|
741,041
|
|
|
$
|
567,524
|
|
Time
|
|
$
|
203,898
|
|
|
$
|
219,922
|
|
|
$
|
202,969
|
|
|
$
|
203,898
|
|
|
$
|
202,969
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
|
5.65
|
%
|
|
2.30
|
%
|
|
5.92
|
%
|
|
3.99
|
%
|
|
6.22
|
%
|
Return on average
tangible stockholders' equity2
|
|
7.85
|
%
|
|
3.07
|
%
|
|
8.06
|
%
|
|
5.43
|
%
|
|
8.51
|
%
|
Return on average
assets
|
|
0.65
|
%
|
|
0.30
|
%
|
|
0.80
|
%
|
|
0.49
|
%
|
|
0.84
|
%
|
Return on average
tangible assets3
|
|
0.68
|
%
|
|
0.31
|
%
|
|
0.83
|
%
|
|
0.50
|
%
|
|
0.87
|
%
|
Common stockholders'
equity ratio
|
|
11.64
|
%
|
|
11.39
|
%
|
|
13.45
|
%
|
|
11.64
|
%
|
|
13.45
|
%
|
Tangible common
stockholders' equity ratio4
|
|
8.43
|
%
|
|
8.18
|
%
|
|
9.90
|
%
|
|
8.43
|
%
|
|
9.90
|
%
|
Net interest
spread
|
|
3.35
|
%
|
|
3.74
|
%
|
|
3.65
|
%
|
|
3.54
|
%
|
|
3.67
|
%
|
Net interest
margin
|
|
3.40
|
%
|
|
3.80
|
%
|
|
3.70
|
%
|
|
3.58
|
%
|
|
3.72
|
%
|
Total revenue (net
int. inc. + non int. inc.)
|
|
$
|
29,987
|
|
|
$
|
27,615
|
|
|
$
|
26,047
|
|
|
$
|
57,602
|
|
|
$
|
51,133
|
|
Efficiency
ratio5
|
|
74.48
|
%
|
|
88.79
|
%
|
|
70.60
|
%
|
|
81.34
|
%
|
|
72.77
|
%
|
Loan to deposit
ratio
|
|
73.29
|
%
|
|
68.27
|
%
|
|
78.23
|
%
|
|
73.29
|
%
|
|
78.23
|
%
|
Credit Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
Reserve for loan
losses
|
|
$
|
24,666
|
|
|
$
|
24,430
|
|
|
$
|
23,501
|
|
|
$
|
24,666
|
|
|
$
|
23,501
|
|
Reserve for loan
losses to ending gross loans
|
|
1.30
|
%
|
|
1.37
|
%
|
|
1.45
|
%
|
|
1.30
|
%
|
|
1.45
|
%
|
Reserve for credit
losses
|
|
$
|
25,106
|
|
|
$
|
24,870
|
|
|
$
|
23,941
|
|
|
$
|
25,106
|
|
|
$
|
23,941
|
|
Reserve for credit
losses to ending gross loans
|
|
1.32
|
%
|
|
1.39
|
%
|
|
1.47
|
%
|
|
1.32
|
%
|
|
1.47
|
%
|
Non-performing assets
("NPAs")
|
|
$
|
15,221
|
|
|
$
|
14,638
|
|
|
$
|
9,984
|
|
|
$
|
15,221
|
|
|
$
|
9,984
|
|
NPAs to total
assets
|
|
0.51
|
%
|
|
0.49
|
%
|
|
0.41
|
%
|
|
0.51
|
%
|
|
0.41
|
%
|
Delinquent >30
days to total loans (excl. NPAs)
|
|
0.19
|
%
|
|
0.30
|
%
|
|
0.07
|
%
|
|
0.19
|
%
|
|
0.07
|
%
|
Net (recoveries)
charge-offs
|
|
$
|
(236)
|
|
|
$
|
(15)
|
|
|
$
|
(257)
|
|
|
$
|
(251)
|
|
|
$
|
(3,448)
|
|
Net loan (recoveries)
charge-offs to average total loans
|
|
(0.01)%
|
|
|
—
|
%
|
|
(0.02)%
|
|
|
(0.01)%
|
|
|
(0.22)%
|
|
|
|
1
|
Tangible book value
per common share is a non-GAAP measure defined as total
stockholders' equity, less the sum of core deposit intangible
("CDI") and goodwill, divided by total number of shares
outstanding. See below for reconciliation of tangible book
value per common share.
|
2
|
Return on average
tangible stockholders' equity is a non-GAAP measure defined as net
income divided by average total stockholders' equity, less the sum
of average CDI and goodwill. See below for a reconciliation of
return on average tangible stockholders' equity.
|
3
|
Return on average
tangible assets is a non-GAAP measure defined as net income divided
by average total assets, less the sum of average CDI and goodwill.
See below for a reconciliation of return on average tangible
assets.
|
4
|
Tangible common
stockholders' equity ratio is a non-GAAP measure defined as total
stockholders' equity, less the sum of CDI and goodwill, divided by
total assets. See below for a reconciliation of tangible common
stockholders' equity ratio.
|
5
|
The efficiency ratio
is a non-GAAP ratio that is calculated by dividing non-interest
expense by the sum of net interest income and non-interest income.
Other companies may define and calculate this data
differently.
|
CASCADE
BANCORP
|
ADDITIONAL
FINANCIAL INFORMATION (continued)
|
(In thousands,
except per share data) (Unaudited)
|
|
|
|
|
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
Bank Capital
Ratios
|
|
Estimate
|
|
|
|
|
Tier 1 capital
leverage ratio
|
|
7.84
|
%
|
|
8.48
|
%
|
|
8.93
|
%
|
Common equity Tier 1
ratio
|
|
9.88
|
%
|
|
10.22
|
%
|
|
10.89
|
%
|
Tier 1 risk-based
capital ratio
|
|
9.88
|
%
|
|
10.22
|
%
|
|
10.89
|
%
|
Total risk-based
capital ratio
|
|
11.00
|
%
|
|
11.41
|
%
|
|
12.16
|
%
|
Bancorp Capital
Ratios
|
|
|
|
|
|
|
Tier 1 capital
leverage ratio
|
|
7.94
|
%
|
|
8.64
|
%
|
|
9.05
|
%
|
Common equity Tier 1
ratio
|
|
10.01
|
%
|
|
10.42
|
%
|
|
11.08
|
%
|
Tier 1 risk-based
capital ratio
|
|
10.01
|
%
|
|
10.42
|
%
|
|
11.08
|
%
|
Total risk-based
capital ratio
|
|
11.12
|
%
|
|
11.61
|
%
|
|
12.35
|
%
|
Reconciliation of
Non-GAAP Measures (unaudited):
|
Reconciliation of
period end stockholders' equity to period end tangible
stockholders' equity:
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
Total stockholders'
equity
|
|
345,260
|
|
|
$
|
339,725
|
|
|
$
|
336,774
|
|
|
$
|
325,356
|
|
Core deposit
intangible
|
|
12,720
|
|
|
13,085
|
|
|
6,863
|
|
|
7,273
|
|
Goodwill
|
|
82,594
|
|
|
82,594
|
|
|
78,610
|
|
|
78,610
|
|
Tangible
stockholders' equity
|
|
$
|
249,946
|
|
|
$
|
244,046
|
|
|
$
|
251,301
|
|
|
$
|
239,473
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period end common stockholders' equity ratio to period end tangible
common stockholders' equity ratio:
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
Total stockholders'
equity
|
|
$
|
345,260
|
|
|
$
|
339,725
|
|
|
$
|
336,774
|
|
|
$
|
325,356
|
|
Total
assets
|
|
$
|
2,966,574
|
|
|
$
|
2,982,005
|
|
|
$
|
2,468,029
|
|
|
$
|
2,418,487
|
|
Common stockholders'
equity ratio
|
|
11.64
|
%
|
|
11.39
|
%
|
|
13.65
|
%
|
|
13.45
|
%
|
Tangible
stockholders' equity
|
|
$
|
249,946
|
|
|
$
|
244,046
|
|
|
$
|
251,301
|
|
|
$
|
239,473
|
|
Total
assets
|
|
$
|
2,966,574
|
|
|
$
|
2,982,005
|
|
|
$
|
2,468,029
|
|
|
$
|
2,418,487
|
|
Tangible common
stockholders' equity ratio
|
|
8.43
|
%
|
|
8.18
|
%
|
|
10.18
|
%
|
|
9.90
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
period end total stockholders' equity to period end tangible book
value per common share:
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
Total stockholders'
equity
|
|
$
|
345,260
|
|
|
$
|
339,725
|
|
|
$
|
336,774
|
|
|
$
|
325,356
|
|
Core deposit
intangible
|
|
12,720
|
|
|
13,085
|
|
|
6,863
|
|
|
7,273
|
|
Goodwill
|
|
82,594
|
|
|
82,594
|
|
|
78,610
|
|
|
78,610
|
|
Tangible stockholders
equity
|
|
$
|
249,946
|
|
|
$
|
244,046
|
|
|
$
|
251,301
|
|
|
$
|
239,473
|
|
Common shares
outstanding
|
|
73,255,171
|
|
|
72,774,980
|
|
|
72,792,570
|
|
|
72,848,611
|
|
Tangible book value
per common share
|
|
$
|
3.41
|
|
|
$
|
3.35
|
|
|
$
|
3.45
|
|
|
$
|
3.29
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
Reconciliation of
return on average tangible stockholders' equity:
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
Average stockholders'
equity
|
|
$
|
342,591
|
|
|
$
|
339,236
|
|
|
$
|
334,472
|
|
|
$
|
324,622
|
|
|
$
|
340,913
|
|
|
$
|
321,564
|
|
Average core deposit
intangible
|
|
12,865
|
|
|
6,800
|
|
|
6,935
|
|
|
7,344
|
|
|
9,833
|
|
|
7,446
|
|
Average
goodwill
|
|
82,594
|
|
|
78,653
|
|
|
78,610
|
|
|
78,610
|
|
|
80,624
|
|
|
79,277
|
|
Average tangible
stockholders' equity
|
|
$
|
247,132
|
|
|
$
|
253,783
|
|
|
$
|
248,927
|
|
|
$
|
238,668
|
|
|
$
|
250,456
|
|
|
$
|
234,841
|
|
Net income
|
|
4,824
|
|
|
1,940
|
|
|
5,567
|
|
|
4,795
|
|
|
6,764
|
|
|
9,913
|
|
Return on average
tangible stockholders' equity (annualized)
|
|
7.85
|
%
|
|
3.07
|
%
|
|
8.87
|
%
|
|
8.06
|
%
|
|
5.43
|
%
|
|
8.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
Reconciliation of
return on average tangible assets:
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
Average total
assets
|
|
$
|
2,961,853
|
|
|
$
|
2,638,568
|
|
|
$
|
2,525,708
|
|
|
$
|
2,399,322
|
|
|
$
|
2,800,210
|
|
|
$
|
2,379,161
|
|
Average core deposit
intangible
|
|
12,865
|
|
|
6,800
|
|
|
6,935
|
|
|
7,344
|
|
|
9,833
|
|
|
7,446
|
|
Average
goodwill
|
|
82,594
|
|
|
78,653
|
|
|
78,610
|
|
|
78,610
|
|
|
80,624
|
|
|
79,277
|
|
Average tangible
assets
|
|
$
|
2,866,394
|
|
|
$
|
2,553,115
|
|
|
$
|
2,440,163
|
|
|
$
|
2,313,368
|
|
|
$
|
2,709,753
|
|
|
$
|
2,292,438
|
|
Net income
|
|
4,824
|
|
|
1,940
|
|
|
5,567
|
|
|
4,795
|
|
|
6,764
|
|
|
9,913
|
|
Return on average
tangible assets (annualized)
|
|
0.68
|
%
|
|
0.31
|
%
|
|
0.91
|
%
|
|
0.83
|
%
|
|
0.50
|
%
|
|
0.87
|
%
|
Reconciliation of
adjusted net interest income growth:
|
|
March 31,
2016
|
Q2 2016 net interest
income
|
|
$
|
22,216
|
|
|
|
|
Q1 2016 net interest
income
|
|
22,159
|
|
Impact to net
interest margin of interest income on called securities
|
|
1,510
|
|
Adjusted Q1 2016 net
interest income
|
|
20,649
|
|
Adjusted net interest
income growth (dollars)
|
|
$
|
1,567
|
|
Adjusted net interest
income growth (percent)
|
|
7.6
|
%
|
|
|
|
Reconciliation of
adjusted net interest margin:
|
|
March 31,
2016
|
Net interest
margin
|
|
3.80
|
%
|
Impact to net
interest margin of $1.5 million interest income on called
securities
|
|
0.26
|
%
|
Adjusted net interest
margin
|
|
3.54
|
%
|
|
|
|
Reconciliation of
year-over-year total loan growth to organic loan growth (from June
30, 2015):
|
|
Year over year
June 30, 2016
|
Total loan
growth
|
|
$
|
276,343
|
|
Acquired loan
growth
|
|
95,676
|
|
Organic loan
growth
|
|
$
|
180,667
|
|
|
|
|
Reconciliation of
quarterly total loan growth to organic loan growth (from March 31,
2016):
|
|
QTD June 30,
2016
|
Total loan
growth
|
|
$
|
117,874
|
|
Acquired loan
growth
|
|
42,842
|
|
Organic loan
growth
|
|
$
|
75,032
|
|
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SOURCE Cascade Bancorp