Cascade Bancorp in Bend, Ore., said Thursday after the market closed that it earned $5 million less in the fourth quarter than it first reported last month due to deterioration in its portfolio of construction and land development loans.
The $2.4 billion-asset Cascade had initially reported a loan-loss provision of $7.5 million but increased it to $15.6 million after it found evidence that the underlying value of collateral was lower than it had estimated. As a result, it lowered its fourth-quarter net income to $300,000, compared to $5.3 million it had reported on Jan. 23.
Net income for 2007 was reduced to $30 million, from the previously reported $35 million.
"As we navigate through this challenging downturn in the real estate market, we will continue to monitor our loan portfolio and take appropriate measures to reserve against the risks posed," chief executive officer Patricia L. Moss said in a news release.
In the fourth quarter of 2006, Cascade earned $10.2 million. For 2006, the company's net income was $35.7 million.
