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The Oregon company is hopeful it will enjoy significant stock appreciation once investors realize the value of its acquisition of Home Federal in Idaho. Management hopes other potential sellers agree.
June 20 -
Cascade Bancorp (CACB) in Bend, Ore., has outbid another company to snag Home Federal (HOME) in Nampa, Idaho.
October 23 -
Banner in Walla Walla, Wash., reported a big increase in second-quarter earnings thanks to its recent branch acquisitions in Oregon.
July 24
Costs associated with its recent acquisition pushed Cascade Bancorp, in Bend, Ore., into the red in the second quarter.
Cascade reported a loss of $4.7 million for the quarter after it recorded $10 million in charges related to its May acquisition of Home Federal Bancorp in Nampa, Idaho.
The loss compares to a $46.4 million profit in the same quarter last year. That quarter's results were lifted by the reversal of the company's valuation allowance against its deferred tax asset. In the first quarter, the company reported earnings of $900,000.
The $2.3 billion-asset company
The company expedited the conversion in an effort to quickly show the deal's value, based on its cost saves, to the market and then focus on the revenue-building opportunities. Home was initially set to sell itself to
"We are extremely pleased with having both closed and integrated Home Federal Bancorp during the last two weeks of May," said Terry Zink, president and chief executive of Cascade, in a press release. "While there is still more to do, we expect the third and fourth quarters of 2014 will demonstrate the potential earnings power of the combined banks as we build momentum."
The addition of Home increased Cascade's deposits by 66.4% from the end of 2013, to $1.9 billion, and it pushed loans up 41%, to $1.4 billion.
Organic loan growth was "muted" in the quarter, the company said in a press release, because production was offset by a "top 10" customer who used excess liquidity to pay off a loan.
The company's net interest income was $15.7 million, up 37% a year earlier, while its noninterest income was $4.8 million, also up 37%.