Cascade Bancorp Inc. in Bend, Ore., restated its second- and third-quarter results because of a miscalculation that understated its loan-loss reserves.
In a Securities and Exchange Commission filing Friday, the $2.4 billion-asset company said that it opted to restate earnings after it discovered a problem with its loan data extract software program that miscalculated the treatment of classified loans that "have been partially participated to other financial institutions."
The change increased the company's loan-loss provision for the six months by roughly $5.8 million in the second quarter, to $18.3 million, and by $300,000 in the third, to $15.4 million.
As a result, Cascade reported a second-quarter loss of $3.2 million; it had reported a profit of $200,000. Its third-quarter profit declined by half with the restatement, to $300,000.
