Cascade Bancorp (CACB) in Bend, Ore., reported lower quarterly profits as merger costs drove up noninterest expenses.
The company earned $1.2 million, or 3 cents per share, in the fourth quarter an 8% decrease from the fourth quarter of 2012.
Net interest income was $13.1 million, a 9% increase from the same period a year earlier thanks to growth in Cascade's loan portfolio. Gross loans outstanding totaled $994.5 million, up 16% from the fourth quarter of 2012.
Noninterest income rose 11%, to $3.9 million.
Noninterest expense totaled $14.8 million. The 5% increase was driven in part by $1 million in merger costs related to Cascades pending purchase of Home Federal Bancorp. The cost of professional services, salaries and employee benefits also rose.
Cascade did not set aside a loan-loss provision in the fourth quarters of 2013 or 2012 because of continuing improvements in loan quality. Net chargeoffs fell 23% from the previous quarter, to $796,000.
Cascade has $1.4 billion in assets.